The economics of social data.

A data intermediary acquires signals from individual consumers regarding their preferences. The intermediary resells the information in a product market wherein firms and consumers tailor their choices to the demand data. The social dimension of the individual data—whereby a consumer's data are pred...

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Published in:RAND Journal of Economics (Wiley-Blackwell) Vol. 53; no. 2; pp. 263 - 297
Main Authors: Bergemann, Dirk, Bonatti, Alessandro, Gan, Tan
Format: Article
Published: Wiley-Blackwell Jun2022
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Jun2022
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      tig:
        atl: The economics of social data.
      aug:
        au:
          Bergemann, Dirk
          Bonatti, Alessandro
          Gan, Tan
        affil:
          Yale University
          MIT Sloan School of Management
      su:
        Socioeconomics
        Consumer education
        Consumer preferences
        Externalities
        Privacy
        Value capture
      sug:
        subj:
          Socioeconomics
          Consumer education
          Consumer preferences
          Externalities
          Privacy
          Value capture
      keyword:
        collaborative filtering
        consumer privacy
        data externality
        data intermediaries
        data policy
        data rights
        personal information
        privacy paradox
        social data
        collaborative filtering
        consumer privacy
        data externality
        data intermediaries
        data policy
        data rights
        personal information
        privacy paradox
        social data
      ab: A data intermediary acquires signals from individual consumers regarding their preferences. The intermediary resells the information in a product market wherein firms and consumers tailor their choices to the demand data. The social dimension of the individual data—whereby a consumer's data are predictive of others' behavior—generates a data externality that can reduce the intermediary's cost of acquiring the information. The intermediary optimally preserves the privacy of consumers' identities if and only if doing so increases social surplus. This policy enables the intermediary to capture the total value of the information as the number of consumers becomes large.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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