Big Data Economics, Towards Data Market Places
Nature of Data, Exchange Mechanisms, Prices, Choices, Agents & Ecosystems
by Renaud Di Francesco, PhD
This book addresses the economics of Big Data, beyond a project by project cost analysis.
The fuel or input of any Big Data system is source data. In many cases of current use of Big Data, excepting Open Data, the data is obtained for one single purpose, and used by a single organisation, because of the likely absence of an open and transparent market where such data can be purchased or sold. Our objective is to analyse the objects, agents, and mechanisms at play for source data within the Big Data context, and give an economic perspective rather than an Information Technology engineering perspective to Big Data.
The nature of data will be discussed, as a good which is digital rather than material, can be replicated at virtually no cost, and is not burnt or consumed in any irreversible way by its being used in a computation.
Requirements for exchange mechanisms of source data, and associated rights of use, will be discussed, with rules for transfer and use, control retention or not by originating owner, privacy and other basic requirements and constraints on data access.
Pricing and contract requirements for categories of data rights will be described, and illustrated on a few examples.
The agents acting on data and the related ecosystems will be presented with a model for roles and attributes.
Particular cases with already established digital commerce of data, and corresponding pricing, and right management schemes for digital objects will be discussed in several “verticals” or specific sectors of the economy.