In an environment that features second-degree price discrimination, this paper fully characterizes the set of surplus divisions that can arise from all possible information consumers have about their valuation. By extending the techniques developed in a companion paper (Yang, 2019a), I show that...

This paper analyzes a setting in which a manufacturer (he) and a retailer (she) face uncertain demand, but the retailer has an information advantage in the form of a private demand forecast. Such information asymmetry causes the manufacturer to incur a hidden information cost. The results show...