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Strategic data sales with partial segment profiling

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  • Delbono, Flavio
  • Reggiani, Carlo
  • Sandrini, Luca

Abstract

We analyse the incentives of a data broker to sell consumer-level data that enable personalised pricing to compete with firms when only a fraction of consumers — centred around one firm that we label “central” — are profiled. The central firm can potentially benefit from the data more than the rival ones (“peripheral”). We show that the data broker may decide not to sell the dataset to the central firm and instead trade with its peripheral competitors. In particular, we identify a strategic reaction of competitors that want to prevent that data increase competition.

Suggested Citation

  • Delbono, Flavio & Reggiani, Carlo & Sandrini, Luca, 2024. "Strategic data sales with partial segment profiling," Information Economics and Policy, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:iepoli:v:68:y:2024:i:c:s0167624524000246
    DOI: 10.1016/j.infoecopol.2024.101102
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    1. Garg, Prashant & Fetzer, Thiemo, 2024. "Causal Claims in Economics," I4R Discussion Paper Series 183, The Institute for Replication (I4R).

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    More about this item

    Keywords

    Data markets; Personalised pricing; Price discrimination; Oligopoly; Selling mechanisms;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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