Brave new data – Databeleid in een imperfecte wereld
Policy Options for the Data Economy – a Literature Review
Scientists are trying to answer this question. In this Background Document we review the economics literature on this topic. We analyze the data value chain and study how data change economic costs. There are several market failures, such as externalities and unbalanced market power, that distort the working of the data economy. To address these market failures several policy options in the data economy are conceivable. Leveraging collective action in policy design, as an alternative to the traditional focus on informed individual decision making, increases the likelihood of realizing optimal social outcomes.