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Score Disclosure

Author

Listed:
  • Levent Celik

    (University of London)

  • Mikhail Drugov

    (New Economic School)

Abstract

We study verifiable disclosure by a monopolist when the product has multiple quality attributes. We identify an equilibrium in which the firm discloses a score- the average of the qualities-without revealing any further information. While full unraveling is still an equilibrium, it is dominated by the score equilibrium in terms of ex ante as well as ex post profits. Moreover, it is "defeated" by the score equilibrium.

Suggested Citation

  • Levent Celik & Mikhail Drugov, 2021. "Score Disclosure," Working Papers w0285, New Economic School (NES).
    • Handle: RePEc:abo:neswpt:w0285
    as

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    File URL: https://www.nes.ru/files/Preprints-resh/WP285.pdf
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    References listed on IDEAS

    as
    1. Mailath George J. & Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1993. "Belief-Based Refinements in Signalling Games," Journal of Economic Theory, Elsevier, vol. 60(2), pages 241-276, August.
    2. Hanming Fang & Peter Norman, 2006. "To bundle or not to bundle," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 946-963, December.
    3. repec:dau:papers:123456789/12406 is not listed on IDEAS
    4. Ching‐to Albert Ma & Henry Y. Mak, 2014. "Public Report, Price, and Quality," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(2), pages 443-464, June.
    5. Frédéric Koessler & Régis Renault, 2012. "When does a firm disclose product information?," RAND Journal of Economics, RAND Corporation, vol. 43(4), pages 630-649, December.
    6. Alex Smolin, 2023. "Disclosure and pricing of attributes," RAND Journal of Economics, RAND Corporation, vol. 54(4), pages 570-597, December.
    7. Saak, Alexander E., 2006. "The optimal private information in single unit monopoly," Economics Letters, Elsevier, vol. 91(2), pages 267-272, May.
    8. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
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    10. Hanming Fang & Peter Norman, 2006. "To bundle or not to bundle," RAND Journal of Economics, The RAND Corporation, vol. 37(4), pages 946-963, December.
    11. Levent Celik, 2014. "Information Unraveling Revisited: Disclosure of Horizontal Attributes," Journal of Industrial Economics, Wiley Blackwell, vol. 62(1), pages 113-136, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Monopoly; quality uncertainty; verifiable information disclosure; multi- dimensional types.;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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