Journal article

Competitive and revenue-optimal pricing with budgets

Abstract:: 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.

Publication status:: Published

Peer review status:: Peer reviewed

Actions

Email

Email this record

Send the bibliographic details of this record to your email address.

Your Email
Please enter the email address that the record information will be sent to.

-
Your message (optional)
Please add any additional information to be included within the email.
Share
Cite

Cite this record

APA Style

Finster, S., Goldberg, P. W., & Lock, E. (2025). Competitive and revenue-optimal pricing with budgets. Theoretical Economics, 20, 1135–1153.

MLA Style

Finster, S, et al. “Competitive and Revenue-Optimal Pricing with Budgets.” Theoretical Economics, vol. 20, 2025, pp. 1135–53.

Chicago Style

Finster, S, PW Goldberg, and E Lock. 2025. “Competitive and Revenue-Optimal Pricing with Budgets.” Theoretical Economics 20: 1135–53.
Print

Access Document

Files:: Finster_et_al_2025_Competitive_and_revenue-optimal.pdf

(Preview, Version of record, pdf, 268.8KB, Terms of use)

Publisher copy:: 10.3982/te5913

Authors

+ Finster, S More by this author

Role:: Author

+ Goldberg, PW More by this author

Institution:: University of Oxford
Division:: MPLS
Department:: Computer Science
Role:: Author

+ Lock, E More by this author

Institution:: University of Oxford
Division:: MPLS
Department:: Computer Science
Oxford college:: Balliol College
Role:: Author
ORCID:: 0000-0002-0604-2602

+ Engineering and Physical Sciences Research Council More from this funder

Funder identifier:: https://ror.org/0439y7842
Grant:: EP/X040461/1

Publisher:: Econometric Society
Journal:: Theoretical Economics More from this journal
Volume:: 20
Pages:: 1135-1153
Publication date:: 2025-04-10
Acceptance date:: 2025-04-06
DOI:: 10.3982/te5913
EISSN:: 1555-7561
ISSN:: 1933-6837

Language:: English
Keywords:: competitive equilibrium

revenue maximisation

efficiency

market design

budget constraints

Fisher market

product-mix auction

arctic auction
Pubs id:: 2106294
Local pid:: pubs:2106294
Deposit date:: 2025-04-07
ARK identifier:: ark:/29072/ora_0ad719d59e104677876dde35c6ed072f

Terms of use

Copyright holder:: Finster et al.
Copyright date:: 2025
Rights statement:: © 2025 The Authors. Licensed under the Creative Commons Attribution-NonCommercial License 4.0.

Licence:: CC Attribution-NonCommercial (CC BY-NC)

Views and Downloads

About views and downloads

If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP