Optimal menu when agents make mistakes

This paper studies how an optimal menu chosen by a social planner depends on whether agents receive imperfect signals about their true tastes (imperfect self-knowledge) or the properties of available alternatives information). Under self-knowledge, it is not to offer fewer than number different present in population, unless noise infinite (agents have no clue preferences). As increases, offers items that are closer together (more similar). However, under information, as could be construct with more distinct alternatives, restrict options, or, for some finite noise, single item.