Optimal choice of characteristics for a nonexcludable good

A-Tier
Journal: RAND Journal of Economics
Year: 2008
Volume: 39
Issue: 1
Pages: 283-304

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this model, a principal decides whether to produce one indivisible good and which characteristics it contains. Agents are differentiated along two substitutable dimensions: a vertical parameter that captures their valuation for the good, and a horizontal parameter that captures their disutility when the characteristics are distant from their preferred ones. When valuations are private information, the principal produces a good with characteristics more on the lines of the preferences of the agent with the lowest valuation. Under asymmetric information on the horizontal dimension, the principal biases the decision in favor of the agent who incurs the highest disutility.

Technical Details

RePEc Handle
repec:bla:randje:v:39:y:2008:i:1:p:283-304
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25