Monopoly, Product Quality and Information Disclosure

What is the role of information disclosure for a multi-product seller? We study the optimal combination of selling mechanism and information disclosure policy for a profit-maximizing monopolist with products of distinct qualities. Provided that the buyer has unit demand and multiplicative valuation, we show it is optimal for the seller to set a posted price for each product and reveal the one of highest realized quality. The key insight is that information disclosure can facilitate surplus extraction when there are decent alternatives, while no disclosure is optimal with a single product. In both cases, a posted price mechanism is optimal.