*I thank the referee and the Editor for their helpful comments.
THE VALUE OF PRIVATE INFORMATION IN MONOPOLY*
Article first published online: 11 APR 2008
© 2008 The Authors
The Journal of Industrial Economics
Volume 56, Issue 1, pages 169–189, March 2008
How to Cite
SAAK, A. E. (2008), THE VALUE OF PRIVATE INFORMATION IN MONOPOLY. The Journal of Industrial Economics, 56: 169–189. doi: 10.1111/j.1467-6451.2008.00337.x
- Issue published online: 11 APR 2008
- Article first published online: 11 APR 2008
We investigate a basic question about a monopoly with incomplete information: when does the seller have an incentive to allow potential buyers to acquire more private information about their tastes for the seller's product? Under plausible conditions such as log-concave density of willingness-to-pay and convex marginal cost, the seller prefers that the paying customers be well informed as a group but be left in the dark regarding their individual tastes.