A monopolist sells informative experiments to heterogeneous buyers. Buyers diﬀer in their prior information, and hence in their willingness to pay for additional signals. The monopolist can proﬁtably oﬀer a menu of experiments. We show that, even under costless information acquisition and free degrading of information, the optimal menu is quite coarse. The seller oﬀers at most two experiments, and we derive conditions under which at vs. discriminatory pricing is optimal.
Experiments, Mechanism design, Price discrimination, Product diﬀerentiation, Selling information