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AI Data Auction

Posted-price sale for AI data

A posted-price sale is a fixed-price offer in which the seller names a price and any buyer can accept it.

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How a posted-price sale works

  1. The seller publishes a price and license terms.
  2. Buyers accept or walk away.
  3. The seller adjusts the price over time.

When it fits AI data

Fits catalogue datasets that can be sold many times, such as cloud data exchange listings.

Example. A dataset is listed on a data exchange at an annual subscription price.

Pros and cons

Pros

  • Simple and fast
  • Scales to many buyers
  • Predictable for procurement

Cons

  • The seller has to guess the price
  • No price discovery
  • Leaves money behind when demand is strong

Data types where it applies

Posted-price sale compared with related mechanisms

Dutch auction
A Dutch auction is a descending-price auction in which the price starts high and falls until the first buyer accepts it.
Revenue-share licensing
Revenue-share licensing is a pricing model in which a data owner receives a percentage of the revenue a model or product earns from using the data.

Key terms

data licensing
Data licensing is the grant of rights to use a dataset for stated purposes, in return for payment or other terms.
reserve price
A reserve price is the minimum price at which a seller will complete an auction.

Frequently asked questions

Why do data marketplaces use posted prices?
Datasets can be sold to many buyers without being used up, so a standing price scales better than one-off auctions.