Publication Date: July 2016
Revision Date: June 2017
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.
Information design, Price of information, Statistical experiments, Mechanism design, Price discrimination, Hypothesis testing.
JEL Classification Codes: D42, D82, D83