We study buyer-optimal information structures under monopoly pricing. The information structure determines how well the … seller. Motivated by the regulation of product information, we assume that the seller can disclose more if the learning is … imperfect. Extension proof information structures prevent such disclosure, which is a constraint in the design problem. Our main …

We model the regulation of irreversible capacity expansion by a firm with private information about capacity costs … a revenue tax that increases with the price cap. If the asymmetric information has large support, then the optimal … unregulated monopolist, and it is not taxed. This “maximal distortion at the top” is necessary to provide information rents, as …