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Persistent link: https://www.econbiz.de/10011696164
A sender sells an object of unknown quality to a receiver who pays his expected value for it. Sender and receiver might hold different priors over quality. The sender commits to a monotone categorization of quality. We characterize the sender's optimal monotone categorization, the optimality of...
Persistent link: https://www.econbiz.de/10014536944