Title

Selling Information

Document Type

Discussion Paper

Publication Date

12-1-2009

CFDP Number

1743R

CFDP Revision Date

2011-08-01

CFDP Pages

58

Abstract

We characterize optimal selling protocols/equilibria of a game in which an Agent first puts hidden effort to acquire information and then transacts with a Firm that uses this information to take a decision. We determine the equilibrium payoffs that maximize incentives to acquire information. Our analysis is similar to finding ex ante optimal self-enforcing contracts since information sharing, outcomes and transfers cannot be contracted upon. We show when and how selling and transmitting information gradually helps. We also show how mixing/side bets increases the Agent’s incentives.

This document is currently not available here.

Share

COinS