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 | Dauphine, room A405 |
Data Externality and the Value of Data
presentation based on “Value of Data: There’s No Such Thing as a Free Lunch in the Digital Economy,” RIETI Discussion Paper Series, 19-E-022, 2019, joint work with Wendy C.Y. Li and Kazufumi Yamana
It has become evident that data has economic value. Transactional data voluntarily released by customers are digitally recorded, merged, analyzed, and used to generate further transactions. Data constitutes a significant portion of the intangible assets of digital giants and rationalizes the unprecedented level of their market capitalization. Often, valuable services are provided free in return for data, leading to a complication in national accounts that measure the aggregate value added produced in the digital era. In this talk, we gauge the economic value of data using available methods and explore the sources of the value. We present a simple model in which transactional data generates a particular externality internalized by a platform company.
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