Coopetition Against an Amazon
Ronen Gradwohl ⋅ Moshe Tennenholtz
Abstract
This paper studies cooperative data-sharing between competitors vying to predict a consumer's tastes. We design optimal data-sharing schemes both for when firms compete only with each other, and for when they additionally compete with an Amazon---a company with more, better data. We derive conditions under which competitors benefit from coopetition, and under which full data-sharing is optimal.
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