Understanding Big Data:Data Calculus In The Digital Era : report from the Luohan Academy

 Here's a new report from the Luohan Academy

Understanding Big Data:Data Calculus In The Digital Era   Feb 05, 2021 

Authors

Luohan Community: Patrick Bolton, Bengt Holmström, Eric Maskin, Sir Christopher Pissarides, Michael Spence, Tao Sun, Tianshu Sun,Wei Xiong, Liyan Yang

In-house: Long Chen, Yadong Huang, Yong Li, Xuan Luo, Yingju Ma, Shumiao Ouyang, Feng Zhu

From the foreword: "The pervasive use of digitized information has reached a new height that we call the era of "big data." While this has led to unprecedented societal cooperation, it has also intensified three major concerns: How can we properly protect personal privacy in the age of big data? How do we understand and manage the ownership and distribution of benefits and risks arising from the use of data? Will the use of big data lead to "winner-take-all" markets that undermine competition to the detriment of consumers and society? "

From the conclusion: "While acknowledging the challenges of privacy and data security risks, we have explored how such risks can be effectively and efficiently managed through a middle ground of government and industry self-regulation. With the right design of mechanisms and technologies, it has become increasingly possible to maintain anonymity, collect and share data while avoiding the sharing of personally identifiable information and reducing privacy and security risks, while still allowing data to freely flow. With the right technologies, the benefits of data sharing do not have to conflict with unacceptable risks to privacy. There is a way forward to capture the enormous benefits of big data while mitigating its risks, the goal of efficient and effective privacy protection. 

"One major issue is data ownership. Giving ownership of data to users who are the subjects of the data may seem like a natural safeguard of privacy. But exclusive ownership would run up against the efficient use of data as a non-rivalry good. In practice, individuals are seldom willing to make the effort of producing and recording data. In the language of economists, the private provision of a public good is generally inefficient. In addition, most people on the street do not have the capacity to mine and create big data for innovation. Data producers -- engineers at information technology firms -- do.

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"We conclude by recommending the following three principles for governing the market for digital data:

Principle 1: Data ownership by data producers (including data subjects as producers) should be predicated on data integrity, anonymity, and especially the protection of personal and societal privacy.

Principle 2: Privacy protection and data security can to a large extent be achieved by combining state-of-the-art technologies and innovative mechanism designs.

Principle 3: Competition and consumer protection analyses of and policy prescriptions for data-driven markets should take into account the documented pro-competitive and pro-consumer benefits of big data along with any potential for anti-competitive and anti-consumer effects in specific markets."