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Daniel M. A. Barreto

Publications and source records attributed to Daniel M. A. Barreto.

2 recordsLinked to original sources

Redistribution Through Market Segmentation

We study how to optimally segment monopolistic markets with a redistributive objective. We characterize optimal redistributive segmentations and show that they (i) induce the seller to price progressively, i.e., charge richer consumers higher prices than poorer ones, and (ii) may not maximize consumer surplus, instead granting extra profits to the monopolist. We further show that optimal redistributive segmentations are implementable via price-based regulation.

econ.TH↗

Persuading a Wishful Thinker

We study a persuasion problem in which a sender designs an information structure to induce a non-Bayesian receiver to take a particular action. The receiver, who is privately informed about his preferences, is a wishful thinker: he is systematically overoptimistic about the most favorable outcomes. We show that wishful thinking can lead to a qualitative shift in the structure of optimal persuasion compared to the Bayesian case, whenever the sender is uncertain about what the receiver perceives as the best-case outcome in his decision problem.

econ.TH↗