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Information Sale on Network

Author

Listed:
  • Jihwan Do
  • Lining Han
  • Xiaoxi Li

Abstract

This paper studies a stylized model of a monopoly data seller when information-sharing network exists among data buyers. We show that, if the buyers' prior information is sufficiently noisy, the optimal selling strategy is characterized by a maximum independent set, which is the largest set of buyers who do not have information-sharing link at all. In addition, the precision of the seller's data decreases in the number of information-sharing links among buyers, but it is higher than the socially efficient level of precision.

Suggested Citation

  • Jihwan Do & Lining Han & Xiaoxi Li, 2024. "Information Sale on Network," Papers 2404.05546, arXiv.org.
    • Handle: RePEc:arx:papers:2404.05546
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    File URL: http://arxiv.org/pdf/2404.05546
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    References listed on IDEAS

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