TY - UNPB
T1 - Pareto-Improving Data-Sharing
AU - Gradwohl, Ronen
AU - Tennenholtz, Moshe
PY - 2022/5/23
Y1 - 2022/5/23
N2 - We study the effects of data sharing between firms on prices, profits, and consumer welfare. Although indiscriminate sharing of consumer data decreases firm profits due to the subsequent increase in competition, selective sharing can be beneficial. We show that there are data-sharing mechanisms that are strictly Pareto-improving, simultaneously increasing firm profits and consumer welfare. Within the class of Pareto-improving mechanisms, we identify one that maximizes firm profits and one that maximizes consumer welfare.
AB - We study the effects of data sharing between firms on prices, profits, and consumer welfare. Although indiscriminate sharing of consumer data decreases firm profits due to the subsequent increase in competition, selective sharing can be beneficial. We show that there are data-sharing mechanisms that are strictly Pareto-improving, simultaneously increasing firm profits and consumer welfare. Within the class of Pareto-improving mechanisms, we identify one that maximizes firm profits and one that maximizes consumer welfare.
KW - cs.GT
KW - econ.TH
U2 - https://arxiv.org/abs/2205.11295
DO - https://arxiv.org/abs/2205.11295
M3 - פרסום מוקדם
BT - Pareto-Improving Data-Sharing
ER -