Financial over-the-counter markets have been traditionally very opaque. Recent regulation promotes transparency in some of these markets by lowering search costs, allowing traders to request quotes from multiple dealers at the same time (pre-trade transparency), and requiring public disclosure of past transactions (post-trade transparency). We evaluate these policies using a dynamic trading model with adverse selection. We show that post-trade transparency improves upon the opaque...

We study third-party data sharing---the sale of consumer data generated as a by-product of ordinary transactions---in a framework with a monopolistic seller, a privately informed consumer, and a third party whose data use imposes privacy costs on the consumer. Our analysis highlights the role of the privacy β, which captures whether consumers with a higher willingness to pay for the seller’s product are more (β > 0)...