Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/198883
Authors: 
Gu, Yiquan
Madio, Leonardo
Reggiani, Carlo
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7523
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.
Subjects: 
data brokers
personal information
privacy
co-opetition
JEL: 
D43
L13
L86
M31
Document Type: 
Working Paper

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