Published on Tuesday, October 1, 2019 | Updated on Wednesday, October 2, 2019

Understanding the economics of information sharing

Conditional to context, information-sharing within markets can be welfare improver or welfare reducer, while can also show pro-competitive or anti-competitive features. Overall, expected effects in efficiency and competition will depend on the nature of competition and the type of uncertainty

Key points

  • Key points:
  • Information is defined as what could be infer by data, and so the latter could be valuable (informative) or not (non-informative, noise)
  • In dynamic settings, information-sharing could facilitate collusion. Antitrust policy is aware and takes both soft and hard evidence to assess effects of data-sharing agreements among rival firms
  • Digital platforms could challenge conventional wisdom regarding competition effects of information-sharing, especially when trying to foster competition “for” the market and innovation efforts…
  • …but privacy and data security costs need to be weighted when dealing with individuals personal data
  • Knowledge from the economics of information-sharing remains suitable to understand effects on competition “in” the market, but artificial intelligence and colluding algorithms rise further challenges to antitrust policy

Documents to download



New comment

Be the first to add a comment.

Load more

You may also be interested in