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In a monopoly setting where consumers cannot observe the quality of the product we show that free samples which are of … to pure price signalling. Both, the monopolist and consumers benefit from the additional signal. …
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In this paper, I consider a problem of multi-dimensional screening in the case when the number of consumer's characteristics, , differs from , the number of goods produced by a monopolist. I show that, in the case when , the qualitative features of solution are similar to those obtained by...
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