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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

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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