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You are a seller of a product, and your goal is to maximize its selling price. The price is determined by the buyer's expectation about
You are a seller of a product, and your goal is to maximize its selling price. The price is determined by the buyer's expectation about the value of the product. Suppose that the following holds: - You know the exact value of V. - The buyer does not observe V, the buyer knows that Pr(V=1)=Pr(V=2)=Pr(V=3)= 1/3. - You can either remain silent or disclose V. The disclosure must be truthful. - Disclosure is costly, you incur $0.6 if you disclose V. Upon each of the three possibilities (i,e, V{1,2,3} ), what is the best strategy for you to maximize the selling price? You are a seller of a product, and your goal is to maximize its selling price. The price is determined by the buyer's expectation about the value of the product. Suppose that the following holds: - You know the exact value of V. - The buyer does not observe V, the buyer knows that Pr(V=1)=Pr(V=2)=Pr(V=3)= 1/3. - You can either remain silent or disclose V. The disclosure must be truthful. - Disclosure is costly, you incur $0.6 if you disclose V. Upon each of the three possibilities (i,e, V{1,2,3} ), what is the best strategy for you to maximize the selling price
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