Language Models Can Reduce Asymmetry in Information Markets

arXiv:2403.14443v1 Announce Type: cross
Abstract: This work addresses the buyer's inspection paradox for information markets. The paradox is that buyers need to access information to determine its value, while sellers need to limit access to prevent theft. To study this, we introduce an open-source simulated digital marketplace where intelligent agents, powered by language models, buy and sell information on behalf of external participants. The central mechanism enabling this marketplace is the agents' dual capabilities: they not only have the capacity …

abstract agents arxiv cs.ai cs.cl cs.gt cs.lg cs.ma cs.si digital information intelligent language language models marketplace markets paradox reduce sellers study theft type value work