Nonrivalry and the Economics of Data
Неконкурентность и экономика данных
2020-09-01
SCID: 54.1/pqhqcutz
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consumer privacycreative destructiondata nonrivalrydata property rightsincreasing returns
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Abstract (AI)
Data is nonrival: a person’s location history, medical records, and driving data can be used by many firms simultaneously. Nonrivalry leads to increasing returns. As a result, there may be social gains to data being used broadly across firms, even in the presence of privacy considerations. Fearing creative destruction, firms may choose to hoard their data, leading to the inefficient use of nonrival data. Giving data property rights to consumers can generate allocations that are close to optimal. Consumers balance their concerns for privacy against the economic gains that come from selling data broadly. (JEL C80, D11, D21, D83, E22, K11, O34)
Key Findings
1
Assigning data property rights to consumers can produce allocations close to optimal.
2
Consumers trade off privacy concerns against the economic gains from selling their data broadly.
3
Data is nonrival: the same location, medical, or driving data can be used simultaneously by multiple firms.
4
Firms may inefficiently hoard data because they fear creative destruction, preventing socially beneficial uses of nonrival data.
5
Nonrivalry creates increasing returns and can generate social benefits when data is shared broadly across firms, even with privacy concerns.
Research Object
Nonrival consumer data, including location histories, medical records, and driving data
Research Subject
The economic effects of data nonrivalry, including increasing returns, broad data use across firms, data hoarding, privacy–economic gain trade-offs, and consumer data property rights
Publication Details
Publication Date
2020-09-01
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