Technical Appendix: Information Sales and Strategic Trading

Abstract

In this technical appendix we extend the results in the paper “Information sales and strategic trading.” We study the problem of a monopolist selling information to a set of risk-averse traders. We first analytically reduce the seller’s problem to a simple constrained optimization, allowing for arbitrary allocations of information. We also fully characterize the equilibria in the models of Kyle (1985) and Kyle (1989) under general signal structures. Finally, we provide details on the numerical solutions to the information sales problems presented in the paper.