Selling Experiments: Menu Pricing of Information

Dirk Bergemann, Alessandro Bonatti and Alex Smolin

No 1952, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: A monopolist sells informative experiments to heterogeneous buyers. Buyers differ in their prior information, and hence in their willingness to pay for additional signals. The monopolist can profitably offer a menu of experiments. We show that, even under costless information acquisition and free degrading of information, the optimal menu is quite coarse. The seller offers at most two experiments, and we derive conditions under which at vs. discriminatory pricing is optimal.

Keywords: Experiments; Mechanism design; Price discrimination; Product differentiation; Selling information (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014-07
New Economics Papers: this item is included in nep-com, nep-cta, nep-exp and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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