Data Sharing or Analytics Sharing?

Bruno Carballa-Smichowski, Yassine Lefouili, Andrea Mantovani and Carlo Reggiani
Authors registered in the RePEc Author Service: Bruno Carballa Smichowski

No 25-1615, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: Data combination and analytics can generate valuable insights for firms and society as a whole. Firms can seize these opportunities by joining platforms that either allow them to access the data contributed by other firms or provide the result of the analytics performed on such data, depending on whether the platform adopts ''data sharing'' or "analytics sharing" technologies. The former technology enables firms to exploit their data endowment together with the data contributed by others, whereas the latter offers advantages in terms of privacy and security by reducing data transmission. We present a model that allows us to study the economic and managerial incentives generated by these technologies for both firms and a platform. First, we find that the platform chooses analytics sharing only when the security advantage of this technology is sufficiently large. Second, we show that analytics sharing results in a higher total data contribution than data sharing under general and reasonable conditions. Third, we determine the optimal data-combination technology from the perspective of consumers and discuss potential misalignments between the platform's and consumers' preferred technology. Our findings carry relevant policy and managerial implications, offering a pathway to enhance both data provision and security.

Keywords: Data sharing; analytics sharing; data platforms (search for similar items in EconPapers)
JEL-codes: D43 K21 L11 L13 L41 L86 M21 M31 (search for similar items in EconPapers)
Date: 2025-02
New Economics Papers: this item is included in nep-gth, nep-ind, nep-law and nep-mic
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Working Paper: Data Sharing or Analytics Sharing ? (2025)
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