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The Value of Public Information in Monopoly
Author(s) -
Ottaviani Marco,
Prat Andrea
Publication year - 2001
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.1111/1468-0262.00262
Subject(s) - monopoly , value (mathematics) , economics , value of information , public information , microeconomics , econometrics , mathematical economics , statistics , mathematics , political science , public administration
The logic of the linkage principle of Milgrom and Weber (1982) extends to price discrimination. A non-linear pricing monopolist who sells to a single buyer always prefers to commit to publicly reveal information affiliated to the valuation of the buyer. This is also valid when the value of the buyer affects the opportunity cost of the seller.