Coopetition Against an Amazon

05/20/2020

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by   Ronen Gradwohl, et al.

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This paper studies cooperative data-sharing between competitors vying to predict a consumer's tastes. We design optimal data-sharing schemes both for when they compete only with each other, and for when they additionally compete with an Amazon—a company with more, better data. In both cases we show that participants benefit from such coopetition. We then apply the insights from our optimal schemes to more general settings.