Make or Buy Decisions and Data Sharing

Antoine Dubus and Patrick Legros

No 2026-05, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: Firms may share data to discover potential synergies between their data sets and algorithms,eventually leading to more efficient mergers and acquisitions (M&A) decisions. However,data sharing also modifies the competitive balance when firms do not merge, and a companymay be reluctant to share data with potential rivals. Under general conditions, we show thatfirms benefit from (partially) sharing data. By doing so, they can merge conditionally basedon high synergies. Compared to a laissez-faire situation, the presence of a regulator allowingor refusing the M&A may increase or decrease data sharing, with a concomitant increaseor decrease in consumer surplus. Hence, regulation can lower the surplus of consumers it iswilling to protect. We revisit the Google/Fitbit acquisition through the lens of this interplaybetween strategic data sharing and antitrust policy.

Keywords: artificial Intelligence; Synergies; Mergers and Acquisition; incomplete Information; Antitrust (search for similar items in EconPapers)
JEL-codes: G34 K21 L10 L21 L24 L50 L86 (search for similar items in EconPapers)
Pages: 46 p.
Date: 2026-02-05
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