Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, August 9, 2019

Data brokers co-opetition

By: Yiquan GuLeonardo MadioCarlo Reggiani
Abstract: Data brokers collect, manage, and sell customer data. We propose a simple model, in which data brokers sell data to downstream firms. We characterise the optimal strategy of data brokers and highlight the role played by the data structure for co-opetition. If data are “sub-additive”, with the combined value lower than the sum of the values of the two datasets, data brokers share data and sell them jointly. When data are “additive” or “supra- additive”, with the combined value equal to or greater than the sum of the two datasets, data brokers compete. Results are robust to several extensions.
   
   
   
URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_7523&r=com

https://lawprofessors.typepad.com/antitrustprof_blog/2019/08/data-brokers-co-opetition.html

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