Document Type
Discussion Paper
Publication Date
7-1-2016
CFDP Number
2049R
CFDP Revision Date
2017-06-01
CFDP Pages
62
Abstract
A data buyer faces a decision problem under uncertainty. He can augment his initial private information with supplemental data from a data seller. His willingness to pay for supplemental data is determined by the quality of his initial private information. The data seller optimally offers a menu of statistical experiments. We establish the properties that any revenue-maximizing menu of experiments must satisfy. Every experiment is a non-dispersed stochastic matrix, and every menu contains a fully informative experiment. In the cases of binary states and actions, or binary types, we provide an explicit construction of the optimal menu of experiments.
Recommended Citation
Bergemann, Dirk; Bonatti, Alessandro; and Smolin, Alex, "The Design and Price of Information" (2016). Cowles Foundation Discussion Papers. 2507.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/2507