Digital Ecosystems and Data Regulation

Andrew Rhodes, Jidong Zhou and Junjie Zhou
Additional contact information
Jidong Zhou: Yale University [New Haven]
Junjie Zhou: THU - Qing hua da xue = Tsinghua University = Université Tsinghoua [Beijing]

Working Papers from HAL

Abstract: This paper develops a framework in which a multiproduct ecosystem competes with multiple single-product firms in both price and innovation. The ecosystem can use data from one product to improve the quality of its other products. We use the framework to study three regulatory policies aimed at leveling the playing field. Restricting the ecosystem's cross-product data usage, or forcing it to share data with single-product firms, benefits those firms and induces them to innovate more. However, these policies also dampen the ecosystem's incentive to collect data and innovate, potentially raising prices. Consumers are better off only when single-product firms are sufficiently good at innovating. Facilitating data exchange between single-product firms via a data cooperative can backfire and harm them, because it induces the ecosystem to price more aggressively. For both the data-sharing and data-cooperative policies, there exist data-compensation schemes such that consumers are better off compared to no regulation.

Keywords: digital ecosystems; innovation; data regulation; data cooperative (search for similar items in EconPapers)
Date: 2026-02-26
Note: View the original document on HAL open archive server: https://hal.science/hal-04965491v2
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-04965491v2/document (application/pdf)

Related works:
Working Paper: Digital Ecosystems and Data Regulation (2026)
Working Paper: Digital Ecosystems and Data Regulation (2025)
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:hal:wpaper:hal-04965491

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().