Buyer-Optimal Learning and Monopoly Pricing
Anne-Katrin Roesler and
American Economic Review, 2017, vol. 107, issue 7, 2072-80
This paper analyzes a bilateral trade model where the buyer's valuation for the object is uncertain and she observes only a signal about her valuation. The seller gives a take-it-or-leave-it offer to the buyer. Our goal is to characterize those signal structures which maximize the buyer's expected payoff. We identify a buyer-optimal signal structure which generates (i) efficient trade and (ii) a unit-elastic demand. Furthermore, we show that every other buyer-optimal signal structure yields the same outcome as the one we identify: in particular, the same price.
JEL-codes: D11 D42 D82 D83 L12 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20160145
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... o09AO3omKUIrQGhEp26W (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... sX5wou8sBE2-MRchsaIy (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Buyer-optimal learning and monopoly pricing (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:7:p:2072-80
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().