On Revenue Optimal Combinatorial Auctions - IFP Group at the ...

Model
A Bayesian framework
The value of a buyer n:
A realization of a discrete random variable X n .
X n ∈ {xn 1 , xn 2 , . . . , xn
Kn
}, where 0 ≤ xn 1 < xn 2 < . . . < xn Kn
.
p i n P(X n = x i n), assume p i n > 0.
One-dimensional private information:
Beliefs:
The exact realization of X n is known only to buyer n.
X n ’s are independent across the buyers.
The probability distributions of X n ’s are common knowledge.