EconPapers    
Economics at your fingertips  
 

Screening with Persuasion

Dirk Bergemann, Tibor Heumann and Stephen Morris

No 2338, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We consider a general nonlinear pricing environment with private information. We characterize the information structure that maximizes the seller’s profits. The seller who cannot observe the buyer’s willingness to pay can control both the signal that a buyer receives about his value and the selling mechanism. The optimal screening mechanism has finitely many items even with a continuum of types. We identify sufficient conditions under which the optimal mechanism has a single item. Thus, the socially efficient variety of items is decreased drastically at the expense of higher revenue and lower information rents.

Keywords: Nonlinear Pricing; Finite Menu; Second-degree Price Discrimination; Recommender System (search for similar items in EconPapers)
JEL-codes: D44 D47 D83 D84 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2022-07
New Economics Papers: this item is included in nep-com, nep-des, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://cowles.yale.edu/sites/default/files/files/pub/d23/d2338.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Working Paper: Screening with Persuasion (2023) Downloads
Working Paper: Screening with Persuasion (2023) Downloads
Working Paper: Screening with Persuasion (2022) Downloads
Working Paper: Screening with Persuasion (2022) Downloads
Working Paper: Screening with Persuasion (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cwl:cwldpp:2338

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University Yale University, Box 208281, New Haven, CT 06520-8281 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Brittany Ladd ().

 
Page updated 2024-07-22
Handle: RePEc:cwl:cwldpp:2338