Authors: Frédéric Koessler (Paris School of Economics) and Régis Renault (Université de Cergy-Pontoise, Thema)

A firm chooses a price and how much information to disclose about its product to a consumer whose tastes are unknown to the firm. We provide a necessary and sufficient condition on the match function for full disclosure to be the unique equilibrium outcome whatever the cost function and prior beliefs about product and consumer types. That condition encompasses the condition that all consumers agree on the ranking of product types' quality as in standard persuasion games, but it also allows for different consumers to have different rankings of the potential product types. When product and consumer types are independently distributed, a necessary and sufficient condition on equilibrium payoffs is that they are at least as high as those under full disclosure for all product types.

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