Too Much Data: Prices and Inefficiencies in Data Markets
Publication
, Journal Article
Acemoglu, D; Makhdoumi, A; Malekian, A; Ozdaglar, A
Published in: American Economic Journal Microeconomics
January 1, 2022
When a user shares her data with online platforms, she reveals information about others. In such a setting, externalities depress the price of data because once a user's information is leaked by others, she has less reason to protect her data and privacy. These depressed prices lead to excessive data sharing. We characterize conditions under which shutting down data markets improves welfare. Platform competition does not redress the problem of excessively low data prices and too much data sharing and may further reduce welfare. We propose a scheme based on mediated data sharing that improves efficiency.
Duke Scholars
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Published In
American Economic Journal Microeconomics
DOI
EISSN
1945-7685
ISSN
1945-7669
Publication Date
January 1, 2022
Volume
14
Issue
4
Start / End Page
218 / 256
Related Subject Headings
- 3803 Economic theory
- 3801 Applied economics
- 3502 Banking, finance and investment
- 14 Economics
Citation
APA
Chicago
ICMJE
MLA
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Acemoglu, D., Makhdoumi, A., Malekian, A., & Ozdaglar, A. (2022). Too Much Data: Prices and Inefficiencies in Data Markets. American Economic Journal Microeconomics, 14(4), 218–256. https://doi.org/10.1257/mic.20200200
Acemoglu, D., A. Makhdoumi, A. Malekian, and A. Ozdaglar. “Too Much Data: Prices and Inefficiencies in Data Markets.” American Economic Journal Microeconomics 14, no. 4 (January 1, 2022): 218–56. https://doi.org/10.1257/mic.20200200.
Acemoglu D, Makhdoumi A, Malekian A, Ozdaglar A. Too Much Data: Prices and Inefficiencies in Data Markets. American Economic Journal Microeconomics. 2022 Jan 1;14(4):218–56.
Acemoglu, D., et al. “Too Much Data: Prices and Inefficiencies in Data Markets.” American Economic Journal Microeconomics, vol. 14, no. 4, Jan. 2022, pp. 218–56. Scopus, doi:10.1257/mic.20200200.
Acemoglu D, Makhdoumi A, Malekian A, Ozdaglar A. Too Much Data: Prices and Inefficiencies in Data Markets. American Economic Journal Microeconomics. 2022 Jan 1;14(4):218–256.
Published In
American Economic Journal Microeconomics
DOI
EISSN
1945-7685
ISSN
1945-7669
Publication Date
January 1, 2022
Volume
14
Issue
4
Start / End Page
218 / 256
Related Subject Headings
- 3803 Economic theory
- 3801 Applied economics
- 3502 Banking, finance and investment
- 14 Economics