Market for Information and Selling Mechanisms

Abstract

This article analyzes how the selling mechanisms used by a data intermediary impact the optimal information structure sold to competing firms. We analyze how take it or leave it offers, sequential bargaining, and auctions, change the bargaining power between the data intermediary and competing firms, impacting the price of information, and the amount of data collected on the market for information. We highlight conflicting interests between data intermediaries, data protection agencies and competition authorities, and we discuss regulatory implications.

Keywords: Consumer information; Price discrimination, Regulation