A profit-maximizing monopolist offers to sell a product to a potential buyer with an uncertain valuation. The seller has the flexibility to choose both the product price and the information structure for revealing the buyer's valuation. Upon observing the seller's choices and the revealed information, the buyer can decide whether to costly acquire additional information. We establish the optimality of a cutoff information policy: a buyer is only informed whether his true value exceeds a certain cutoff. We further characterize an optimal selling scheme, in which the seller always deters the buyer from acquiring additional information through strategic information disclosure and pricing.
