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Market for Information and Selling Mechanisms

Author

Listed:
  • David Bounie

    (i3, CNRS, Télécom Paris, Institut Polytechnique de Paris)

  • Antoine Dubus

    (Department of Management, Technology and Economics, ETH Zurich Leonhardstrasse 21 Switzerland – 8092 Zurich, Switzerland)

  • Patrick Waelbroeck

    (i3, CNRS, Télécom Paris, Institut Polytechnique de Paris)

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.

Suggested Citation

  • David Bounie & Antoine Dubus & Patrick Waelbroeck, 2022. "Market for Information and Selling Mechanisms," CER-ETH Economics working paper series 22/367, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    • Handle: RePEc:eth:wpswif:22-367
    as

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    File URL: https://www.ethz.ch/content/dam/ethz/special-interest/mtec/cer-eth/cer-eth-dam/documents/working-papers/WP-22-367.pdf
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    References listed on IDEAS

    as
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    Keywords

    Selling mechanisms; Market for information; Data intermediaries; Competition policy; Regulation of digital markets;
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