Scandinavian Working Papers in Economics
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Department of Economics, Lund University Working Papers, Department of Economics, Lund University

No 1999:8:
The Demand for Information Services and the Market Structure

Håkan Holm ()

Abstract: Our main conclusion is that the demand for information services that facilitate statistical screening between profitable and unprofitable sellers is highly sensitive to the market structure. A monopsonist will use information more extensively than would two or more buyers on the same market. We also show that information quality differences in the sense of Blackwell will influence the demand on information. In equilibrium only the best information service will be used.

Keywords: Screening; Information Service; Market Behavior; (follow links to similar papers)

JEL-Codes: C72; D21; D82; (follow links to similar papers)

25 pages, September 15, 1999

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This paper is published as:
Holm, Håkan, (2002), 'The Demand for Information Services and the Market Structure', Journal of Economics, Vol. 77, No. 2, pages 155-183

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