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100 _aWei, Dong and Green, Brett
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245 _aReverse Price discrimination with information design
260 _aAmerican Economic Journal: Microeconomics
300 _a16(2). May, 2024: p.267-295
520 _aA seller markets a good to a customer whose willingness to pay depends on his private type and the good's quality. The seller designs a screening mechanism that specifies both transfers and information revealed about quality. We show that the optimal mechanism can be implemented by a menu of price-experiment pairs, featuring both price discrimination and information discrimination: buyers with higher private types face lower prices and receive less discerning positive signals. Moreover, we demonstrate the complementarity between these two forms of discrimination. Information design facilitates surplus creation on the extensive margin, but causes surplus destruction on the intensive margin.- Reproduced https://www.aeaweb.org/articles?id=10.1257/mic.20220242
650 _aScreening mechanism, Price discrimination, Information discrimination, Private type, Product quality, Transfer design, Optimal mechanism, Menu design, Buyer incentives, Signal design, Surplus creation, Surplus destruction, Extensive margin, Intensive margin, Information design, Economic modeling, Mechanism design, Consumer behavior, Strategic pricing, Market segmentation
_956349
773 _aAmerican Economic Journal: Microeconomics
906 _aMARKET STRUCTURE
942 _cAR