0EM190 - infonomics Flashcards
private value
value creation to private stakeholders (direct effects)
- health
- cheap travel/products
- satisfaction/empowerment
- wealth creation
Public value
Value capture based on fairness, equality & solidarity (indirect effects)
- freedom of expression
- transparency
- equity
- wealth creation
Monopolistic rents
Rents which are enjoyed by private companies based on exploiting the benefits of network effects & use of algorithms
(Economic rent is an amount of money earned that exceeds that which is economically or socially necessary)
draw the commons table & explain
(non-)rivalrous + (non-)excludable
zie schrift
- private goods
- club goods
- public goods
- common goods
what are consumer & producer surplus?
โ> draw it
๐๐จ๐ง๐ฌ๐ฎ๐ฆ๐๐ซ ๐ฌ๐ฎ๐ซ๐ฉ๐ฅ๐ฎ๐ฌ; difference between; price willing to make market price
๐ฉ๐ซ๐จ๐๐ฎ๐๐๐ซ ๐ฌ๐ฎ๐ซ๐ฉ๐ฅ๐ฎ๐ฌ; difference between; consumer WTP market price
network effects
the value & lock-in of a platform increase with the number of participants
๐ฌ๐๐ฆ๐-๐ฌ๐ข๐๐ ๐ง๐๐ญ๐ฐ๐จ๐ซ๐ค ๐๐๐๐๐๐ญ๐ฌ; more usersโ> more users
๐๐ซ๐จ๐ฌ๐ฌ-๐ฌ๐ข๐๐ ๐ง๐๐ญ๐ฐ๐จ๐ซ๐ค ๐๐๐๐๐๐ญ๐ฌ; more usersโ> more sellers (& vice versa)
natural monopoly
happens when 1 firm is sufficient to cover the entire market (railways, water companies, digital platforms)
- single firm minimizes production costs
- LRAC decline for all outputs no matter market size (no diseconomies of scale)
- societally beneficial if company works to marginal costs (perfect price discrimination)
name the 7 main points of the;
Digital Markets Act (DMA) โ>2023
- ๐๐๐๐ข๐ง๐๐ฌ ๐ ๐๐ญ๐๐ค๐๐๐ฉ๐๐ซ๐ฌ ๐ฎ๐ฌ๐ข๐ง๐ ๐ช๐ฎ๐๐ง๐ญ๐ข๐ญ๐๐ญ๐ข๐ฏ๐ ๐ฆ๐๐ญ๐ซ๐ข๐๐ฌ (not waterproof) & ๐ฉ๐จ๐ฌ๐๐ฌ ๐ซ๐ฎ๐ฅ๐๐ฌ;
- ๐๐จ ๐๐จ๐ฆ๐๐ข๐ง๐ข๐ง๐ ๐ฉ๐๐ซ๐ฌ๐จ๐ง๐๐ฅ ๐๐๐ญ๐ ๐๐จ๐ฅ๐ฅ๐๐๐ญ๐๐ ๐๐ซ๐จ๐ฆ ๐ญ๐ฐ๐จ ๐๐ข๐๐๐๐ซ๐๐ง๐ญ ๐ฌ๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐๐ฅ๐จ๐ง๐ ๐ข๐ง๐ ๐ญ๐จ ๐ญ๐ก๐ ๐ฌ๐๐ฆ๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฒ (facebook using whatsapp data)
- ๐ฉ๐ซ๐จ๐ญ๐๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐ฉ๐ฅ๐๐ญ๐๐จ๐ซ๐ฆ๐ฌโ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ ๐ฎ๐ฌ๐๐ซ๐ฌ (e.g. apple 30%, forced best deals)
- ๐ง๐จ ๐ฌ๐๐ฅ๐-๐ฉ๐ซ๐๐๐๐ซ๐๐ง๐๐ข๐ง๐ ๐ฆ๐๐ญ๐ก๐จ๐๐ฌ (amazon direct buy & google shopping)
- ๐ง๐จ ๐๐จ๐ซ๐๐๐ ๐ฉ๐ซ๐-๐ข๐ง๐ฌ๐ญ๐๐ฅ๐ฅ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐ฌ๐จ๐ฆ๐ ๐ฌ๐๐ซ๐ฏ๐ข๐๐๐ฌ (Google Android)
- ๐ซ๐๐ ๐ฎ๐ฅ๐๐ญ๐ข๐จ๐ง ๐ซ๐๐ฅ๐๐ญ๐๐ ๐ญ๐จ ๐๐ฎ๐ง๐๐ฅ๐ข๐ง๐ ๐ฉ๐ซ๐๐๐ญ๐ข๐๐๐ฌ
- ๐ฉ๐ซ๐จ๐ฏ๐ข๐ฌ๐ข๐จ๐ง๐ฌ ๐๐จ๐ซ ๐๐ง๐ฌ๐ฎ๐ซ๐ข๐ง๐ ๐ข๐ง๐ญ๐๐ซ๐จ๐ฉ๐๐ซ๐๐๐ข๐ฅ๐ข๐ญ๐ฒ & ๐๐๐ญ๐ ๐ฉ๐จ๐ซ๐ญ๐๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐๐จ๐ซ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ๐๐ฌ & ๐ฎ๐ฌ๐๐ซ๐ฌ
โ> fine is up to 10% of worldwide turnover,law only applicable to gatekeepers, 8 different sectors covered
name the 4 main points of the;
Digital Services Act (DSA)
for all companies, but the full scope of regulation only for VLOP (gatekeepers)
- ๐ญ๐ซ๐๐ง๐ฌ๐ฉ๐๐ซ๐๐ง๐๐ฒ ๐ฆ๐๐๐ฌ๐ฎ๐ซ๐๐ฌ for algorithm recommendations + ads shown
- ๐๐๐๐๐๐ญ๐ข๐ฏ๐ ๐ฎ๐ฌ๐๐ซ ๐ฌ๐๐๐๐ ๐ฎ๐๐ซ๐๐ฌ right to challenge content moderation + complaint handling system + no manipulation of user behaviour
- ๐ง๐จ๐ญ๐ข๐๐-๐๐ง๐-๐ญ๐๐ค๐๐๐จ๐ฐ๐ง ๐ฆ๐๐๐ฌ๐ฎ๐ซ๐๐ฌ; to combat illegal stuff
- ๐จ๐๐ฅ๐ข๐ ๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐จ๐ซ ๐จ๐ง๐ฅ๐ข๐ง๐ ๐ฆ๐๐ซ๐ค๐๐ญ๐ฉ๐ฅ๐๐๐๐ฌ; to allow traceability of business users
Artificial Intelligence Act (2024)
it defines 4 levels of AI risks, applicable to all but the military industry;
- ๐๐ซ๐จ๐ก๐ข๐๐ข๐ญ๐๐ (social scoring)
- ๐๐๐ซ๐ฆ๐ข๐ญ๐ญ๐๐, ๐๐ฎ๐ญ ๐๐ ๐ซ๐๐ช๐ฎ๐ข๐ซ๐๐ฆ๐๐ง๐ญ๐ฌ & ๐ฎ๐ฉ-๐๐ซ๐จ๐ง๐ญ ๐๐จ๐ง๐๐จ๐ซ๐ฆ๐ข๐ญ๐ฒ ๐๐ฌ๐ฌ๐๐ฌ๐ฌ๐ฆ๐๐ง๐ญ (recruitment, medical services)
- ๐๐๐ซ๐ฆ๐ข๐ญ๐ญ๐๐, ๐๐ฎ๐ญ ๐ญ๐ซ๐๐ง๐ฌ๐ฉ๐๐ซ๐๐ง๐๐ฒ ๐จ๐๐ฅ๐ข๐ ๐๐ญ๐ข๐จ๐ง๐ฌ (impersonation bots)
- ๐๐๐ซ๐ฆ๐ข๐ญ๐ญ๐๐ (without restrictions; no risks)
name the 4 main points of
General) Data Protection Regulation (GDPR
- cookies require explicit opt-in (get around GDPR)
- personal data breaches should be addressed appropriately & quickly (get organized!)
- companies should only collect data they need & remove data they do not need for longer than they need
- people can request to see or move all their data or have it (re)moved
machine data is exempt from GDPR, 4% fine
name the 3 main points of the;
Open) Data Act (2022
- ๐ซ๐ข๐ ๐ก๐ญ ๐ญ๐จ ๐ฌ๐ก๐๐ซ๐ ๐๐๐ญ๐ ๐ฐ๐ข๐ญ๐ก ๐ญ๐ก๐ข๐ซ๐ ๐ฉ๐๐ซ๐ญ๐ข๐๐ฌ ๐ญ๐ก๐๐ญ ๐๐ซ๐ ๐ง๐จ๐ญ ๐ ๐๐ญ๐๐ค๐๐๐ฉ๐๐ซ๐ฌ
- ๐ฆ๐๐ค๐๐ฌ ๐๐๐ญ๐ ๐๐ฏ๐๐ข๐ฅ๐๐๐ฅ๐ ๐ญ๐จ ๐ฉ๐ฎ๐๐ฅ๐ข๐ ๐ฌ๐๐๐ญ๐จ๐ซ ๐๐จ๐๐ข๐๐ฌ (emergency or public interest)
- ๐๐ง๐๐๐ฅ๐๐ฌ ๐๐๐ญ๐ ๐ซ๐๐ช๐ฎ๐๐ฌ๐ญ๐ฌ ๐๐ซ๐จ๐ฆ ๐ฉ๐ฎ๐๐ฅ๐ข๐ ๐ฌ๐๐๐ญ๐จ๐ซ ๐๐จ๐๐ข๐๐ฌ (15 days)
name the 3 main points of the;
Data Governance Act (2020)
-for entities generating industrial data;
- defines conditions for re-using public sector data & sharing of (non-)personal data
- public sector bodies can charge fees for re-use
- data-altruism; personal data can be processed if used for larger interests (science, public services โ>open data act)
What are the 6 major legislative frameworks in the course?
- Digital Markets Act (DMA)
- Digital Services Act (DSA)
- Artificial Intelligence Act
- (General) Data Protection Regulation (GDPR)
- (Open) Data Act
- Data Governance Act
Datafication
Ability of digital platform to formalize aspects of the world into a data format that have never been quantified before
(key to capture niche market needs/long tail)
what is the difference between general & narrow AI?
๐๐๐ง๐๐ซ๐๐ฅ; fundamental research aimed at creating machines with cognitive abilities (general algorithms)
๐๐๐ซ๐ซ๐จ๐ฐ; specific applications of AI & specific applications
2-sided platform
bring together 2 distinct groups
more participants in one sided is better for the other side
multisided platforms add auxiliary services
what is ๐๐ข๐๐๐๐ซ๐๐ง๐ญ๐ข๐๐ฅ ๐ฉ๐ซ๐ข๐๐ข๐ง๐ & which 3 degrees exist
๐๐ข๐๐๐๐ซ๐๐ง๐ญ๐ข๐๐ฅ ๐ฉ๐ซ๐ข๐๐ข๐ง๐ ; the same good has a different price for different customers (amazing with monopoly)
๐๐ข๐ซ๐ฌ๐ญ ๐๐๐ ๐ซ๐๐ ๐๐; firm has complete info about all individual user preferences โ> personalized pricing
๐ฌ๐๐๐จ๐ง๐ ๐๐๐ ๐ซ๐๐ ๐๐; firm has some info โ> menu pricing (bundling!)
๐ญ๐ก๐ข๐ซ๐ ๐๐๐ ๐ซ๐๐ ๐๐; managers do not know WTPโ>group pricing
surge pricing
a form of differential pricing whereby real-time demand is addressed
which 4 forms exist of ๐ณ๐๐ซ๐จ-๐ฉ๐ซ๐ข๐๐ข๐ง๐ ?
- ๐๐ซ๐๐๐ฆ๐ข๐ฎ๐ฆ; free version with paid premium version
- ๐ฅ๐๐ฏ๐๐ซ๐๐ ๐ ๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐๐ซ ๐๐๐ญ๐; sell customer data
- ๐ก๐ข๐๐๐๐ง ๐ซ๐๐ฏ๐๐ง๐ฎ๐; sell ads
- ๐ซ๐๐ณ๐จ๐ซ & ๐๐ฅ๐๐๐๐ฌ; basic product for free/cheap & consumable needed to operate with high price (a.k.a tying)
what 3 legislative instruments exist?
๐๐ข๐ซ๐๐๐ญ๐ข๐ฏ๐ (goal set by EU, executed by national regulatory agency)
๐๐๐ ๐ฎ๐ฅ๐๐ญ๐ข๐จ๐ง (Binding)
๐๐๐๐จ๐ฆ๐๐ง๐๐๐ญ๐ข๐จ๐ง (not-binding)
what is โbundlingโ & which 2 forms of bundling exist?
selling different products in a single package, increasing switching costs
๐๐ฎ๐ซ๐ ๐๐ฎ๐ง๐๐ฅ๐ข๐ง๐ ; only the package is available
๐๐ข๐ฑ๐๐ ๐๐ฎ๐ง๐๐ฅ๐ข๐ง๐ ; combined products are also sold seperately
economies of scope & scale
๐๐จ ๐ฌ๐๐จ๐ฉ๐; producing multiple types of products
๐๐จ ๐ฌ๐๐๐ฅ๐; producing multiple units of the same product
market foreclosure
The exclusion results when a downstream buyer is denied access to an upstream supplier or when an upstream supplier is denied access to a downstream buyer.
combined with bundling you can get exclusive relationships with dealers (move into a market & close if of for others)
kronos effect
efforts by the dominant company to consume innovative competitors in their infancy โ> monopolies suppress innovation
itโs one of the very reasons monopolies harm innovation
what are 2 ways to open up monopolistic markets?
- (๐ฆ๐๐ง๐๐๐ญ๐จ๐ซ๐ฒ) ๐ฎ๐ง๐๐ฎ๐ง๐๐ฅ๐ข๐ง๐ ; (multi-business) company retains core businesses and sells of assets, production lines or subsidiaries (based on essential facilities!)
- ๐๐ข๐ฏ๐๐ฌ๐ญ๐ข๐ญ๐ฎ๐ซ๐; breaking up of a company according to different stages in the value chain
what are the 5 Vโs in big data?
- ๐๐จ๐ฅ๐ฎ๐ฆ๐; lots of data
- ๐๐๐ซ๐๐๐ข๐ญ๐ฒ; quality
- ๐๐๐ฅ๐จ๐๐ข๐ญ๐ฒ; real-time
- ๐ฏ๐๐ฅ๐ฎ๐; ability to transform data into value
- ๐๐๐ซ๐ข๐๐ญ๐ฒ; many sources
what are the 3 types of big data?
-๐๐ฎ๐๐ฅ๐ข๐ ๐๐๐ญ๐ (created, utilized & re-combined by public institutions)
-๐ฉ๐๐ซ๐ฌ๐จ๐ง๐๐ฅ ๐๐๐ญ๐ (any info relating to an identifiable person)
๐๐๐๐ก๐ข๐ง๐ ๐๐๐ญ๐ (created, utilized & re-combined by machines)
digital commons (& 4 main points)
โa data asset that is developed and managed by a communityโ
- common pooling of resources
- provides the basis for joint usage by market & non-market parties
- can be depleted if data are not updated/just used once
- are not a public good (gatekeepers canโt access it according to the open data act)
2 applications of this are; cooperative forms & data trusts (fractional ownership)
anticommons
failure to close the data gap between tech giants & current challengers; data not used efficiently
5 types of algoritmic bias
- ๐ก๐ข๐ฌ๐ญ๐จ๐ซ๐ข๐๐๐ฅ ๐๐ข๐๐ฌ; using historically biased data to train a model (e.g. racial profiling)
- ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ๐๐ญ๐ข๐จ๐ง ๐๐ข๐๐ฌ; sample distribution that is trained on does not match the actual population
- ๐ฆ๐๐๐ฌ๐ฎ๐ซ๐๐ฆ๐๐ง๐ญ ๐๐ข๐๐ฌ; features & labels used in the model are proxies of actual features and labels
- ๐๐ ๐ ๐ซ๐๐ ๐๐ญ๐ข๐จ๐ง ๐๐ข๐๐ฌ; if a single model is used for multiple very different groups
- ๐๐ฏ๐๐ฅ๐ฎ๐๐ญ๐ข๐จ๐ง ๐๐ข๐๐ฌ; need to objectively compare different models to each other
what is โ๐ฌ๐ญ๐ซ๐๐ญ๐๐ ๐ข๐ ๐๐๐ก๐๐ฏ๐ข๐จ๐ฎ๐ซโ by data monopolies and name 3 ways
๐ฌ๐ญ๐ซ๐๐ญ๐๐ ๐ข๐ ๐๐๐ก๐๐ฏ๐ข๐จ๐ฎ๐ซ; behaviours that sustain the monopoly position and suppress competitors
- eliminate competitors (Chronos effect)
- vertical integration
- bundling
draw the ๐ก๐ฒ๐ฉ๐ ๐๐ฒ๐๐ฅ๐ & name the 5 stages
innovation trigger peak of inflated expectations trough of disillusionment slope of enlightenment plateau of productivity
โ> zie schrift
4 ways in which big data can be used to create innovations
- ๐๐จ๐ฆ๐๐ข๐ง๐ข๐ง๐ ๐๐จ๐ ๐ฐ๐ข๐ญ๐ก ๐ญ๐ซ๐๐๐ข๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐ซ๐จ๐๐ฎ๐๐ญ๐ฌ (maintenance)
- ๐๐ข๐ ๐ข๐ญ๐ข๐ณ๐ข๐ง๐ ๐๐ฌ๐ฌ๐๐ญ๐ฌ (google maps)
- ๐๐จ๐ฆ๐๐ข๐ง๐ข๐ง๐ ๐๐๐ญ๐ ๐ฐ๐ข๐ญ๐ก๐ข๐ง ๐๐ง๐ ๐๐๐ซ๐จ๐ฌ๐ฌ ๐ข๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ข๐๐ฌ (electric cars)
- ๐ญ๐ซ๐๐๐ข๐ง๐ ๐๐๐ญ๐ (banking data)
