STABLE OUTCOMES IN SEQUENTIAL INFORMATION TRADING - AN APPLICATION OF THE BARGAINING SET

Information is freely replicable; and thus, resales of replicas are unavoidable unless they are legally prohibited. In this paper, we first present a model of sequential information trading where information is initially owned by a sole player and resales are freely allowed. The model explicitly takes into account players' negotiation on profit sharing in the initial sale as well as in resales which may ensue. Then, using the bargaining set modified appropriately for our model, we analyze how players share information and associated profits.