Data-trading coordination with government subsidy

Kui Jing (), Xin Liu (), Fengmin Xu () and Donglei Du ()
Additional contact information
Kui Jing: Xi’an Jiaotong University
Xin Liu: Xi’an Jiaotong University
Fengmin Xu: Xi’an Jiaotong University
Donglei Du: University of New Brunswick

Journal of Global Optimization, 2023, vol. 87, issue 2, No 24, 877-915

Abstract: Abstract Data trading has become increasingly attractive and crucial in the era of the digital economy. Previous studies present insightful but only partial analysis on data-trading coordination which is of great societal value. One particular case in point is government subsidy that has been a common practice in real-life data trading markets among different countries. We propose a differential game with government subsidies that consists of three agents, a data-providing enterprise, a data trading platform, and the government. We analyze and compare the social welfares for both the centralized and decentralized systems, and present a cost-sharing contract and a revenue sharing contract to maximize the system social welfare, in which the quality and the advertising effort are important factors on data products goodwill. Our results reveal that centralization enhances the efficiency of the data trading system, and the government achieves a higher social welfare level with a lower cost subsidy coefficient. Numerical analyses are also carried to provide further managerial insights by comparative statics analysis on system parameters.

Keywords: Data trading; Quality improvement; Goodwill; Government subsidy; Social welfare maximization (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10898-022-01259-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jglopt:v:87:y:2023:i:2:d:10.1007_s10898-022-01259-4

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/10898

DOI: 10.1007/s10898-022-01259-4

Access Statistics for this article

Journal of Global Optimization is currently edited by Sergiy Butenko

More articles in Journal of Global Optimization from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().