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Competitive and revenue-optimal pricing with budgets

Title: Competitive and revenue-optimal pricing with budgets
Authors: Finster, S; Goldberg, PW; Lock, E
Publisher Information: Econometric Society
Publication Year: 2026
Collection: Oxford University Research Archive (ORA)
Description: In markets with budget-constrained buyers, competitive equilibria need not be efficient in the utilitarian sense, or maximise the seller's revenue. We consider a setting with multiple divisible goods. Competitive equilibrium outcomes, and only those, are constrained utilitarian efficient, a notion of utilitarian efficiency that respects buyers' demands and budgets. Our main contribution establishes that, when buyers have linear valuations, competitive equilibrium prices are unique and revenue-optimal for a zero-cost seller.
Document Type: article in journal/newspaper
Language: English
Relation: https://doi.org/10.3982/te5913
DOI: 10.3982/te5913
Availability: https://doi.org/10.3982/te5913; https://ora.ox.ac.uk/objects/uuid:0ad719d5-9e10-4677-876d-de35c6ed072f
Rights: info:eu-repo/semantics/openAccess ; CC Attribution-NonCommercial (CC BY-NC)
Accession Number: edsbas.47B1BF2F
Database: BASE