Information Markets and Nonmarkets

107 Pages Posted: 22 Sep 2021

See all articles by Dirk Bergemann

Dirk Bergemann

Yale University - Cowles Foundation - Department of Economics; Yale University - Cowles Foundation

Marco Ottaviani

Bocconi University - Department of Economics

Date Written: August 2021

Abstract

As large amounts of data become available and can be communicated more easily and processed more effectively, information has come to play a central role for economic activity and welfare in our age. This essay overviews contributions to the industrial organization of information markets and nonmarkets, while attempting to maintain a balance between foundational frameworks and more recent developments. We start by reviewing mechanism-design approaches to modeling the trade of information. We then cover ratings, predictions, and recommender systems. We turn to forecasting contests, prediction markets, and other institutions designed for collecting and aggregating information from decentralized participants. Finally, we discuss science as a prototypical information nonmarket with participants who interact in a non-anonymous way to produce and disseminate information. We aim to make the reader familiar with the central notions and insights in this burgeoning literature and also point to some open critical questions that future research will have to address.

Keywords: data, data intermediaries, Information, information markets, Information Nonmarkets, Science

JEL Classification: D82, D83, D84, G14, L86

Suggested Citation

Bergemann, Dirk and Ottaviani, Marco, Information Markets and Nonmarkets (August 2021). CEPR Discussion Paper No. DP16459, Available at SSRN: https://ssrn.com/abstract=3928756

Dirk Bergemann (Contact Author)

Yale University - Cowles Foundation - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States
203-432-3592 (Phone)
203-432-2128 (Fax)

HOME PAGE: http://www.econ.yale.edu/~dirk/

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

Marco Ottaviani

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

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