ABSTRACT
This chapter examines how this handful of firms came to dominate the international raw news supply, how these agencies have been able to make money from raw news, and what business models they developed to the end. It also examines especially the period in which these business models emerged, and we will look at theory that can explain how news traders operated. We restrict ourselves here to international news agencies that aim to offer their customers global coverage. Academic studies abound about relations between news reporting and movements in the market, and undoubtedly many financial firms do their own research using large news databanks. The chapter examines the problem, implied by Arrow's fundamental paradox, of how to ask for money for news facts. To get good money for important news, newrs traders need to reveal to the potential buyer what that news is, yet once they have revealed it, the buyer no longer needs to pay.
