We study the information design problem in a single-unit auction setting. The information designer controls independent private signals according to which the buyers infer their binary private value. Assuming that the seller adopts Myerson (1981) optimal auction in response, we characterize both...

A principal who values an object allocates it to one or more agents. Agents learn private information (signals) from an information designer about the allocation payoff to the principal. Monetary transfer is not available but the principal can costly verify agents' private signals. The...