We present a buyer-seller setup in which seller type is private information and buyer utility is state contingent. States of nature are commonly unknown and the seller can design information through a Bayesian experiment on the state by facing a cost based on Shannon’s entropy. Costly...

This article investigates how a privately-informed seller could signal her type by gathering information about the buyer's match value. We study two alternative ways to obtain information. In the first one, labeled information acquisition, the seller can acquire exogenous signals by facing a...

In this paper we study optimal price setting by a seller that offers a supposedly higher-quality product in a market where a good of standard quality is already available. Consumers do not directly observe the quality of the product and their purchasing decisions are distorted by salient...