Using Data and Respecting Users

Communications of the ACM, 2020

6 Pages Posted: 15 Jun 2020

See all articles by Marshall W. Van Alstyne

Marshall W. Van Alstyne

Boston University – Questrom School of Business; Massachusetts Institute of Technology (MIT) - Sloan School

A. Lenart

affiliation not provided to SSRN

Date Written: May 6, 2020

Abstract

As data becomes increasingly valuable, firms face financial pressures to capture that data and extract its value. Consumers, on the other hand, have reason to fear that such data might not be used in their best interests. How can a firm capture data, respect consumer privacy, and create value all at the same time? This article takes technical and legal approaches to offer three solutions that alter the reward to risk ratio from the consumer’s perspective. The first aligns incentives, the second saves masked data, and the third saves masked algorithms. Together, these three approaches offer a range of ways to deliver value from data analysis while protecting users and respecting their trust.

Keywords: Data Science, Big Data, Analytics, Privacy, GDPR

JEL Classification: D04, D18, D61, D8, D82, D86, C8, K10, L2, L5

Suggested Citation

Van Alstyne, Marshall W. and Lenart, A., Using Data and Respecting Users (May 6, 2020). Communications of the ACM, 2020, Available at SSRN: https://ssrn.com/abstract=3594705 or http://dx.doi.org/10.2139/ssrn.3594705

Marshall W. Van Alstyne (Contact Author)

Boston University – Questrom School of Business ( email )

595 Commonwealth Avenue
Boston, MA 02215
United States
617-358-3571 (Phone)

HOME PAGE: http://questromapps.bu.edu/mgmt_new/Profiles/VanAlstyneMarshall.html

Massachusetts Institute of Technology (MIT) - Sloan School ( email )

Initiative on the Digital Economy
245 First St, Room E94-1521
Cambridge, MA 02142
United States
617-253-0768 (Phone)

HOME PAGE: http://web.mit.edu/marshall/www/home.html

A. Lenart

affiliation not provided to SSRN

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