Technical Appendix: Information Sales and Strategic Trading
23 Pages Posted: 15 May 2009 Last revised: 18 Sep 2012
Date Written: May 11, 2009
In this technical appendix we extend the results in the paper “Information sales and strategic trading.” We study the problem of a monopolist selling information to a set of risk-averse traders. We first analytically reduce the seller’s problem to a simple constrained optimization, allowing for arbitrary allocations of information. We also fully characterize the equilibria in the models of Kyle (1985) and Kyle (1989) under general signal structures. Finally, we provide details on the numerical solutions to the information sales problems presented in the paper.
Keywords: markets for information, imperfect competition
JEL Classification: D82, G14
Suggested Citation: Suggested Citation