A Model of Pricing Data and Their Constituent Variables Traded in Two-Sided Markets with Resale: A Subject Experiment.

This note presents a simple model of pricing data and their constituent variables traded in two-sided markets, where resale of data is allowed. The prices of those variables are exogenously set at the initial round, and in each round those prices are updated for the next round immediately at the end of the round, based on the outcomes of data transactions. If traders behave in accordance with the backward induction, then the initial prices never move in any rounds. In the subject experiment, this property was not observed but the average prices of those variables were not far from the initial values. We also examined whether information provision of the gross profits the user and non-user receive from data transactions affects the social welfare measured by the amounts of producer surplus.