Disclosure and pricing of attributes

Abstract

A monopolist sells an object characterized by multiple attributes. A buyer can be one of many types, differing in their willingness to pay for each attribute. The seller can provide arbitrary attribute information in the form of a statistical experiment. To screen different types, the seller offers a menu of options that specify information prices, experiments, and object prices. I characterize revenue-maximizing menus. All experiments belong to a class of linear disclosure rules. An optimal menu may be nondiscriminatory. The analysis highlights the importance of demand microstructure and the benefits of information control in trade settings.