Selling with Evidence
نویسندگان
چکیده
We consider a seller who can propose any selling mechanism to a buyer. The seller’s reservation value and the buyer’s valuation can depend both on the buyer’s privatelyknown taste and on product characteristics privately-known to the seller. Product information is voluntarily and costlessly certifiable by the seller. We characterize all feasible allocations under any certifiability structure and formulate the informed-principal mechanism-proposal game. When product characteristic is perfectly certifiable we show that there is an ex-ante profit-maximizing selling procedure that is an equilibrium of the mechanism-proposal game. In contrast to the case where the seller can only post prices, information unravelling of product characteristics fails even when all buyer types agree on the ranking of product quality.
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