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Mandated data sharing in data-driven markets

My recent work with Cedric Argenton and Christoph Schottmueller on competition in data-driven markets had some policy impact (details here). The key proposal we put forward and analyzed in those theory papers was to require competitors in data-driven markets to share their user information – data about the preferences and characteristics of users gained as a virtually free byproduct of offering certain services, e.g. search engines or online platforms.

Now ESB, a Dutch economic policy outlet, published an entire special issue on such mandated data sharing. Naturally, authors from different backgrounds disagree about the right measures to prevent monopolization of markets. Together with legal scholar Inge Graef, a colleague at the Tilburg Law and Economics Center (TILEC), I explain the original reasoning in a nutshell and discuss policy implementation options, both from a legal and an economic perspective. Our 4-page essay, a bit sensationally called “Mandated data sharing is a necessity in specific sectors,” is here. Financieele Dagblad, a Dutch (language) daily newspaper, wrote about it here.

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