DATA MARKETS AND THE PRODUCTION OF SURVEYS

The production of data. and the functioning of the market for observat ions. are universal concerns to all fields of positive economics. Econ omists. however. have typically placed greater emphasis on systematica lly analyzing the consumption of data than on considering its producti on. In the production of data through surveys. an important input mark et is that of labour. in which a demander trades observations with the supplying sample members. This paper analyses optimal monopsony compe nsation in such data markets, the important relationship it bears to e stimation using the data that are obtained, and the statistical effect s of implicit public wage regulations that are present in U.S. markets for observations.