A Simple Mechanism for a Budget-Constrained Buyer

We study a classic Bayesian mechanism design setting of monopoly problem for an additive buyer in the presence budgets. In this setting, monopolist seller with m heterogeneous items faces single and seeks to maximize her revenue. The has budget valuations drawn independently each item from (non-identical) distributions. show that when buyer’s is publicly known, it better sell separately; selling grand bundle extracts constant fraction optimal When private, we consider standard where b known distribution B . if independent (which necessary) satisfies monotone hazard rate condition, then separately or still approximately optimal.