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Persistent link: https://www.econbiz.de/10010470194
We study optimal contracting by a monopolistic seller of an investment good to a time-inconsistent consumer and, in doing so, introduce asymmetric information to the model of DellaVigna and Malmendier (2004). We find: (1) the below-marginal-cost-pricing rule may fail for a low-value consumer;...
Persistent link: https://www.econbiz.de/10014170654