Equilibrium prices in bundle auctions

The allocation of discrete, complementary resources is a fundamental problem in economics and of direct in-terest to e-commerce applications. In this paper we establish that competitive equilibrium bundle prices al-ways exist that support the efficient allocation in dis-crete resource allocation problems with free disposal. We believe that this is an important step in the quest for a mechanism that performs well in the face of com-plementary preferences. We present a family of auc-tions that use this bundle pricing policy, and make some initial observations on several of its members, in-cluding the new Ascending k-Bundle auction