Seminar

Past

Monopoly Pricing and Information Provision for Selling Perfectly Divisible Goods.

Li Fei

  • Date5 June 2023
  • Time 14h15 - 15h30
  • Room Auditorium 4

Résumé

This paper investigates the optimal pricing and information disclosure for a monopolist selling a perfectly divisible good to a buyer. The buyer has an unknown threshold of desired consumption (needs), and the monopolist observes the buyer's needs and recommends how much to consume. We identify a condition that ensures the buyer consumes up to her maximum individually rational level, thus achieving the supremum of the seller's profit. Where this condition fails, (1) we provide a closed-form characterization of the optimal price and information structure, and (2) we derive a sufficient condition under which the buyer overconsumes beyond her needs almost surely.

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