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Alexander Saak ()

Journal of Industrial Economics, 2008, vol. 56, issue 1, 169-189

Abstract: We investigate a basic question about a monopoly with incomplete information: when does the seller have an incentive to allow potential buyers to acquire more private information about their tastes for the seller's product? Under plausible conditions such as log-concave density of willingness-to-pay and convex marginal cost, the seller prefers that the paying customers be well informed as a group but be left in the dark regarding their individual tastes. Copyright 2008 The Authors.

Date: 2008
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Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

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Handle: RePEc:bla:jindec:v:56:y:2008:i:1:p:169-189