Information Sellers in Financial Markets

摘要: This paper analyzes the market for financial information and incentive of institutions, such as Reuters, to provide traders in decentralized markets. We derive following results: (i) The optimal selling strategy consists identical (Reuters' screen) all traders. (ii) buy from same provider. If may either incumbent or an entrant charges not too high a price, then has no demand even if he gives away quality free. (iii) social benefit provision is non-monotonic acquisition cost. Depending on this cost, economies scale have positive negative effect.