Some Economic Consequences of the GDPR

14 Pages Posted: 29 Apr 2018 Last revised: 31 Mar 2019

See all articles by Darcy W E Allen

Darcy W E Allen

RMIT University

Alastair Berg

RMIT University - School of Economics, Finance and Marketing

Chris Berg

RMIT University - School of Economics, Finance and Marketing

Brendan Markey‐Towler

University of Queensland - School of Economics

Jason Potts

RMIT University

Date Written: March 29, 2019

Abstract

The EU General Data Protection Regulation (GDPR) is a wide ranging personal data protection regime of greater magnitude than any similar regulation previously in the EU, or elsewhere. In this paper, we outline how the GDPR impacts the value of data held by data collectors before proposing some potential unintended consequences. Given the distortions of the GDPR on data value, we propose that new complex financial products—essentially new data insurance markets—will emerge, potentially leading to further systematic risks. Finally we examine how market-driven solutions to the data property rights problems the GDPR seeks to solve—particularly using blockchain technology as economic infrastructure for data rights—might be less distortionary.

Keywords: Data Markets, Information Economics, Regulation, Financial Innovation, Blockchain

JEL Classification: D02, D52, D80, F61, K24, L5

Suggested Citation

Allen, Darcy and Berg, Alastair and Berg, Chris and Markey‐Towler, Brendan and Potts, Jason, Some Economic Consequences of the GDPR (March 29, 2019). Available at SSRN: https://ssrn.com/abstract=3160404 or http://dx.doi.org/10.2139/ssrn.3160404

Darcy Allen

RMIT University ( email )

440 Elizabeth Street
Melbourne, 3000
Australia

Alastair Berg (Contact Author)

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Chris Berg

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Brendan Markey‐Towler

University of Queensland - School of Economics ( email )

Brisbane, QLD 4072
Australia

Jason Potts

RMIT University ( email )

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