Market for Information and Selling Mechanisms
Abstract
A monopolist data intermediary collects consumer information that it strategically sells to competing firms in a product market for price discrimination
purposes. The intermediary charges a price of information and chooses the optimal partition that maximizes the willingness to pay of firms for information. Different selling mechanisms are compared: list prices, sequential bargaining, and auctions. The intermediary optimally sells information
through auctions, whereas consumer surplus is maximized with sequential bargaining and list prices. We discuss the regulatory implications of our
results.
Domains
Economics and Finance| Origin | Files produced by the author(s) |
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