Disclosing Multiple Product Attributes
AbstractA product often has many attributes. The seller of the product may choose whether to disclose these attributes to consumers before their purchase. How do multiple attributes of the product jointly determine the seller's disclosure incentives? I analyze this question by modeling a monopolist whose product is characterized by vertical quality and a horizontal attribute. The monopolist does not always choose disclosure. When the product's vertical quality is common knowledge, a monopolist with higher vertical quality is less likely to disclose the horizontal attribute. When both vertical quality and the horizontal attribute of the product are known only to the monopolist, he is more likely to choose disclosure when vertical quality is higher. Nevertheless, the monopolist may choose nondisclosure even when his product has the highest possible vertical quality. The results shed light on mandatory disclosure policies and the design of quality surveys.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Stanford University, Graduate School of Business in its series Research Papers with number 2006.
Date of creation: Oct 2008
Date of revision:
Contact details of provider:
Postal: Stanford University, Stanford, CA 94305-5015
Phone: (650) 723-2146
Web page: http://gsbapps.stanford.edu/researchpapers/
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.