[ESSEC KNOWLEDGE] by Wilfried Sand-Zantman - Professor of Economics at ESSEC Business School.
The text discusses the economic significance of data in the digital ecosystem, where firms harvest, process, and sell information. It highlights the issue of data ownership and control by consumers, with legal responses in Europe and the US. The article explores the impact of allocating data ownership to consumers or firms in a two-sided market framework. It suggests a trade-off between data overexploitation by firms and data under-processing when consumers have control rights. The optimal choice depends on the market value of data; when it's low, consumer ownership is better, and when it's high, firm ownership is more beneficial. However, determining the value of personal data is complex, and questions of multiple ownership add further complexity to creating a data market.
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