Machine Data: Market and Analytics

50 Pages Posted: 23 Jan 2023

See all articles by Giacomo Calzolari

Giacomo Calzolari

European University Institute - Economics Department (ECO); Centre for Economic Policy Research (CEPR); University of Bologna

Anatole Cheysson

European University Institute - Economics Department (ECO); University of Bologna - Department of Economics

Riccardo Rovatti

University of Bologna

Date Written: January 23, 2023

Abstract

Recent technological developments in ICT and Artificial Intelligence allow extracting valuable information from data that machines generate with production, machine data (MD). Although possibly more valuable than personal data, the growing market for MD and its analytics may suffer from several issues, such as datasets fragmented into many small data-producers, externalities as with non-rival information and fuzzy property rights. We combine these market elements with critical properties that we derive from actual Machine Learning algorithms for analytics. We explore how and to what extent a data aggregator can operate, contracting with different data producers to share data and analytics. We identify conditions that impact the market organization for MD, such as producers' heterogeneity, their preference for anonymity, and the intensity of competition in final markets.

Keywords: Data Analytics, Machine Learning, Artificial Intelligence, Machine Generated Data, Non-Personal Data, IoT, 5G, ICT, Enabling Technology, Market Organization, Externality, Anonymity, Property Rights, Competition.

JEL Classification: L12, L13, M11, M15, D21, D43.

Suggested Citation

Calzolari, Giacomo and Cheysson, Anatole and Rovatti, Riccardo, Machine Data: Market and Analytics (January 23, 2023). Available at SSRN: https://ssrn.com/abstract=4335116

Giacomo Calzolari (Contact Author)

European University Institute - Economics Department (ECO) ( email )

Villa la Fonte
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San Domenico di Fiesole, Florence 50014
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Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

University of Bologna ( email )

Piazza Scaravilli 2
I-40126 Bologna
Italy

HOME PAGE: http://sites.google.com/view/giacomo-calzolari

Anatole Cheysson

European University Institute - Economics Department (ECO) ( email )

Villa San Paolo
Via della Piazzuola 43
50133 Florence
Italy

University of Bologna - Department of Economics ( email )

Bologna
Italy

HOME PAGE: http://acheysson.github.io/

Riccardo Rovatti

University of Bologna

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