Adaptable and resilient regulatory frameworks for three-layer data markets

Develop alternative regulatory frameworks for three-layer data markets comprising users, platforms, and a data buyer that address market intricacies and are both adaptable and resilient to rapid technological change; characterize the resulting equilibrium outcomes and implications for user utility, platform participation, and buyer welfare.

Background

The paper models a three-layer data market with users (data owners), platforms, and a data buyer, and analyzes equilibrium outcomes and welfare under different market conditions. It studies regulatory interventions aimed at improving user utility, including bans on data sharing and (uniform and non-uniform) minimum privacy mandates.

While these specific regulations are analyzed in detail, the authors identify the broader need for regulatory designs that can keep pace with rapid technological changes and address the complexities of data markets. They explicitly note that developing such adaptable and resilient frameworks remains open.

References

Lastly, we have investigated regulations that restrict the transfer of user data to buyers. The challenge of developing alternative regulatory frameworks that address the intricacies of the data market—frameworks that are both adaptable and resilient enough to keep pace with swift technological advancements—remains an open and important area for exploration.

— On Three-Layer Data Markets (2402.09697 - Fallah et al., 15 Feb 2024) in Section 7: Conclusion