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Disclosure and Pricing of Attributes

Author

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  • Alex Smolin

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

A monopolist sells an object characterized by multiple attributes. A buyer can be one of many types, differing in their willingness to pay for each attribute. The seller can provide arbitrary attribute information in the form of a statistical experiment. To screen different types, the seller offers a menu of options that specify information prices, experiments, and object prices. I characterize revenue-maximizing menus. All experiments belong to a class of linear disclosure policies. An optimal menu may be nondiscriminatory and qualitatively depends on the structure of buyer heterogeneity. The analysis informs on the benefits of partial disclosure in pricing settings.

Suggested Citation

  • Alex Smolin, 2023. "Disclosure and Pricing of Attributes," Post-Print hal-04547880, HAL.
    • Handle: RePEc:hal:journl:hal-04547880
    DOI: 10.1111/1756-2171.12451
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    References listed on IDEAS

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    1. Dirk Bergemann & Alessandro Bonatti & Alex Smolin, 2018. "The Design and Price of Information," American Economic Review, American Economic Association, vol. 108(1), pages 1-48, January.
    2. Constantinos Daskalakis & Alan Deckelbaum & Christos Tzamos, 2017. "Strong Duality for a Multiple‐Good Monopolist," Econometrica, Econometric Society, vol. 85, pages 735-767, May.
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    7. Lewis, Tracy R & Sappington, David E M, 1994. "Supplying Information to Facilitate Price Discrimination," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 309-327, May.
    8. Daniel Krähmer & Roland Strausz, 2015. "Optimal Sales Contracts with Withdrawal Rights," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 762-790.
    9. Myerson, Roger B., 1982. "Optimal coordination mechanisms in generalized principal-agent problems," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 67-81, June.
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    12. Roger B. Myerson, 1981. "Optimal Auction Design," Mathematics of Operations Research, INFORMS, vol. 6(1), pages 58-73, February.
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    Citations

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    Cited by:

    1. Levent Celik & Mikhail Drugov, 2021. "Score Disclosure," Working Papers w0285, New Economic School (NES).
    2. Pham, Hien, "undated". "a reprendre_ WP annulé," TSE Working Papers 21-1263, Toulouse School of Economics (TSE).
    3. Pham, Hien, 2023. "How Information Design Shapes Optimal Selling Mechanisms," MPRA Paper 120989, University Library of Munich, Germany, revised 06 Mar 2024.
    4. Daniel Kraehmer, 2018. "Full surplus extraction in mechanism design with information disclosure," CRC TR 224 Discussion Paper Series crctr224_011_2018, University of Bonn and University of Mannheim, Germany.
    5. Yingkai Li, 2021. "Selling Data to an Agent with Endogenous Information," Papers 2103.05788, arXiv.org, revised Aug 2023.

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    More about this item

    Keywords

    Advertising; Attributes; Call options; Demand transformation; Information design; Intermediaries; Linear disclosure; Mechanism design; Multidimensional screening; Persuasion;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • 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

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