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Marketing information: a competitive analysis

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In this paper we propose a simple framework to investigate market structures when the marketed product is information. In markets of "information products", consumer acquisition strategies have to take into account the relations (perceived correlations) among the prducts sold by the different information sellers, as well as their perceived reliability in order to find the optimal number of products they wish to buy. Our paper shows that these externalities lead to interesting forms of competition. In particular, we show that under reasonable conditions a "producer" is better off facing competition than being a monopolist, and collusion in price among information sellers can increase consumer surplus as well as profits

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