Data sales and data dilution

Data sales and data dilution

The peculiarities of the digital economy, including the high cost and rapid reproducibility of information, contribute to the emergence of natural monopolies in the data market.

The aim of the new publication of the Brookings Institution is to analyze how data markets operate and how they are valued. The authors identify two fundamental principles:

  • the data that many other buyers also have loses value;
  • data sellers cannot commit not to sell the same data to more buyers in the future.

These features do not allow the data consumer to be confident in their reliability, as a result of which the value of the data decreases. To avoid such a problem the paper proposes to choose a data subscription. The paper emphasizes that such a solution is beneficial both to the seller, because he receives a large profit, and to the consumer, who will be guaranteed high-quality data.


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