Discussion paper

DP16707 Score Disclosure

We study verifiable disclosure by a monopolist when the product has multiple quality attributes. We identify an equilibrium in which the firm discloses a score---the average of the qualities---without revealing any further information. While full unraveling is still an equilibrium, it is dominated by the score equilibrium in terms of ex ante as well as ex post profits. Moreover, it is ``defeated'' by the score equilibrium.


Celik, L and M Drugov (2021), ‘DP16707 Score Disclosure‘, CEPR Discussion Paper No. 16707. CEPR Press, Paris & London. https://cepr.org/publications/dp16707