Product information provided by sellers and platforms

Stefan Terstiege, Cedric Wasser

Research output: Working paper / PreprintWorking paper


Sellers and platforms both supply product information, but their motivation differs: because of network effects and regulation, and to collect more user data, platforms often target consumer welfare. We show that in this context a profit-maximizing seller cannot do better than to preemptively choose full disclosure: if the consumers' learning remains incomplete and admits higher profits than full disclosure, the platform can add information that makes consumers better off at the cost of lower seller profits. Our result has implications for regulation and the division of labor in information disclosure by sellers and platforms.
Original languageEnglish
Number of pages29
Publication statusPublished - 14 Jul 2022

Publication series

SeriesSSRN Working Paper Series

JEL classifications

  • d42 - Market Structure and Pricing: Monopoly
  • d82 - "Asymmetric and Private Information; Mechanism Design"
  • d83 - "Search; Learning; Information and Knowledge; Communication; Belief"
  • l51 - Economics of Regulation


  • information disclosure
  • Bayesian persuasion
  • platforms
  • regulation

Cite this