The Design of Monopoly Information Broker

Fuente: arXiv
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Main Authors: Chen, Junjie, Yamashita, Takuro
Format: Preprint
Published: 2025
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author Chen, Junjie
Yamashita, Takuro
author_facet Chen, Junjie
Yamashita, Takuro
contents An information broker incentivizes consumers to share their information, while designing an information structure to shape the market segmentation. The information broker is a metaphor for an Internet platform that matches consumers with retailers. We are interested in a market with heterogeneous retailers and heterogeneous consumers. The optimal broking mechanism consists of a simple threshold-based structure where consumers with strong preferences are assigned to the efficient retailer while consumers with weaker preferences are assigned to the inefficient retailer stochastically. Our analysis suggests that the privacy protection policy may have a stronger impact on less competitive retail markets.
format Preprint
id arxiv_https___arxiv_org_abs_2503_19539
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle The Design of Monopoly Information Broker
Chen, Junjie
Yamashita, Takuro
Theoretical Economics
An information broker incentivizes consumers to share their information, while designing an information structure to shape the market segmentation. The information broker is a metaphor for an Internet platform that matches consumers with retailers. We are interested in a market with heterogeneous retailers and heterogeneous consumers. The optimal broking mechanism consists of a simple threshold-based structure where consumers with strong preferences are assigned to the efficient retailer while consumers with weaker preferences are assigned to the inefficient retailer stochastically. Our analysis suggests that the privacy protection policy may have a stronger impact on less competitive retail markets.
title The Design of Monopoly Information Broker
topic Theoretical Economics
url https://arxiv.org/abs/2503.19539