Stable payoffs in resale-proof trades of information

Abstract This paper consider what payoff allocations can be outcomes of resales-proof trades of information with a monopolistic seller. The concept of resale-proofness has been introduced by M. Nakayama, L. Quintas, and S. Muto (1988, “Resale-Proof Trades of Information,” Discussin Paper 776, Northwestern University) in formulating a trade such that no agent has an incentive to resell when the resale is freely allowed. With appropriate modifications, we consider the core of such a trade, and derive a necessary and sufficient condition for the trade to have a single outcome: the monopolistic imputation. It is also shown that generally the sole seller cannot enjoy the monopolistic position in a resale-proof trade.