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
- The seller publishes a price and license terms.
- Buyers accept or walk away.
- 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.