Markets for Information

Abstract

“We discuss the value and the price of social data and how this defines a clear “data markup”. We outline social welfare consequences and provide a preliminary discussion of regulatory responses. Before turning to regulatory implications, we examine two critical aspects of the economics of the Internet that explain the seemingly unlimited thirst for data. First, how the possession of individual data changes the terms of trade between consumers, advertisers, and large internet platforms. Second, how the social dimension of the data magnifies the value of individual data for the platforms.”

joint work with Dirk Bergemann and Tan Gan,  Yale University