Big Data or Big Lie

5 Pages Posted: 12 Nov 2014

Date Written: November 10, 2014

Abstract

Big Data has become a buzz word. It is the next big thing that every corporation should invest in. It is said to bring hundreds of billions dollars in benefits to consumers. In this concept paper I show that Big Data is a tool that will allow corporations to take away consumer surplus from consumers by allowing corporations to charge prices based on consumer personal digital trace. Paper argues that after some time consumers will figure it out and will demand that they are paid to provide such data. So eventually they will get their consumer surplus back. There are also negative externalities of Big Data, such as problems with proper inflation measurement. So from economist viewpoint Big Data is not a disruptive innovation offering great value to consumers. It is a big lie.

Keywords: Big Data, consumer surplus, price discrimination

JEL Classification: C55, D11, E31

Suggested Citation

Rybinski, Krzysztof I., Big Data or Big Lie (November 10, 2014). Available at SSRN: https://ssrn.com/abstract=2522478 or http://dx.doi.org/10.2139/ssrn.2522478

Krzysztof I. Rybinski (Contact Author)

Vistula University ( email )

Stoklosy 3
Warsaw
Poland

Register to save articles to
your library

Register

Paper statistics

Downloads
309
Abstract Views
1,164
rank
98,359
PlumX Metrics