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Score Disclosure

Author

Listed:
  • Drugov, Mikhail
  • ,

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

  • Drugov, Mikhail & ,, 2021. "Score Disclosure," CEPR Discussion Papers 16707, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16707
    as

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    References listed on IDEAS

    as
    1. Hanming Fang & Peter Norman, 2006. "To bundle or not to bundle," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 946-963, December.
    2. Alex Smolin, 2023. "Disclosure and pricing of attributes," RAND Journal of Economics, RAND Corporation, vol. 54(4), pages 570-597, December.
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    5. 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.
    6. 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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    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; Multidimensional 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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