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Article
Publication date: 27 August 2024

Martin D. Mileros and Robert Forchheimer

Personal data is today recognized as an asset in the digital economy, generating billion-dollar annual revenues for many companies. But how much value do users derive from their…

137

Abstract

Purpose

Personal data is today recognized as an asset in the digital economy, generating billion-dollar annual revenues for many companies. But how much value do users derive from their seemingly free apps (zero-price services), and what user costs are associated with this value exchange? By adopting a human-centric lens, this article scrutinizes the complex trade-offs users face trying to capture the benefits and unperceived costs that such usage entails.

Design/methodology/approach

Using a mixed-method research design, this study is anchored in empirical survey data from 196 participants in Linköping, Sweden. The authors investigate users’ willingness to pay for these services in relation to different types of costs.

Findings

The results indicate that users can derive significant value from the use of free services, which can be interpreted as a win-win situation between users and companies. Regarding costs, this research shows that the most significant costs for users are associated with procrastination, sleep deprivation and reduced focus, which can be challenging to identify and evaluate from the users’ perspective.

Research limitations/implications

This study shows that zero-price services provide significant benefits like enhancing social connectivity and offering a wide variety of content. Significant drawbacks, such as increased procrastination and sleep disturbances, highlight the psychological effects of these platforms. These impacts include behavioral changes, emphasizing the influence of online platforms on user engagement. Furthermore, a trend toward single-purchase preferences over free services suggests changing consumer attitudes toward digital payment models. This underscores the need for further research on non-monetary aspects in zero-price markets for better understanding and regulation of the digital economy.

Practical implications

This study shows that users appreciate the accessibility and potential of zero-price services but are wary of privacy concerns. It underscores the need for companies to balance profit objectives with user experiences and privacy requirements. Offering a range of ad-free premium services to meet diverse customer needs can be effective. Users’ high valuation of privacy and transparency suggests businesses should focus on human-centric, privacy-respecting strategies. Increased transparency in data usage and giving users greater data control could enhance the user experience and foster sustainable customer relationships.

Social implications

The study calls for policymakers to focus on non-monetary risks of zero-price services, such as behavioral changes and digital well-being impacts. They should consider implementing regulations to protect users, especially children, from manipulative designs such as “dark patterns”. Policymakers must balance user protection with innovation, leading to a sustainable zero-price economy. For zero-price service users, awareness of non-monetary costs, like procrastination and sleep deprivation, is vital. Understanding that “free” services have hidden costs is important, especially for younger generations. Managing privacy settings and selective service choices can protect privacy and well-being.

Originality/value

This research shifts the focus from simply valuing personal data based on market prices to assessing the worth of free services themselves. By listing various hidden costs, it underscores the need for increased user awareness and greater corporate transparency. Uniquely, it finds that users prefer making one-time purchases over using zero-price services, extending prior assumptions in the field. Additionally, it also characterizes the zero-price economy ecosystem, highlighting differences between market types and provides a deeper understanding of the zero-price market and its related concepts.

Details

Digital Policy, Regulation and Governance, vol. 27 no. 2
Type: Research Article
ISSN: 2398-5038

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Book part
Publication date: 11 December 2023

Elvira Caterina Parisi and Francesco Parisi

Social media networks make their services freely available to all users. Users pay for the service received with the time and attention taken by the advertisements. This chapter…

Abstract

Social media networks make their services freely available to all users. Users pay for the service received with the time and attention taken by the advertisements. This chapter argues that social media platforms are a unique form of monopoly driven by “the more the merrier” effect (i.e., network effects) in users' consumption. These monopolies exercise market power, not by charging higher prices to users but by “tying” larger amounts of advertising to their content. Traditional antitrust instruments designed to address excessive pricing and reduced output by monopolies need to be reframed to tame the attention economy problems in the social media industry. This chapter discusses five antitrust instruments grouped in three categories: structural, behavioral, and market-based remedies. Market-based solutions are the least explored in the literature, despite being the most promising instruments to lower the attention costs imposed on users, while preserving the economies of scope in production and the network effects in consumption, and possibly maintaining free access to social media, as we know it today.

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

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Expert briefing
Publication date: 12 August 2024

This marks the Department of Justice (DoJ)'s first big antitrust win in court since the Microsoft case in the 1990s. It marks a significant victory for the Biden administration's…

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DOI: 10.1108/OXAN-DB288907

ISSN: 2633-304X

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Article
Publication date: 1 June 2000

Douglas A. Galbi

Argues regulations should establish a geographically comprehensive lattice of competing, independently owned, network interconnection points from which telephony operators are…

231

Abstract

Argues regulations should establish a geographically comprehensive lattice of competing, independently owned, network interconnection points from which telephony operators are required to provide zero‐price telephony call termination. Concludes that intrusive regulation of intercompany interconnection and access, such as mandatory co‐location, loop unbundling and line sharing, should be avoided or rapidly phased out.

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info, vol. 2 no. 3
Type: Research Article
ISSN: 1463-6697

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Expert briefing
Publication date: 8 May 2019

Quantifying digital consumption.

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DOI: 10.1108/OXAN-DB243710

ISSN: 2633-304X

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Article
Publication date: 17 November 2020

Lei Huang, Yandong Zhao, Guangxi He, Yangxu Lu, Juanjuan Zhang and Peiyi Wu

The online platform is one of the essential components of the platform economy that is constructed by a large scale of the personal data resource. However, accurate empirical test…

436

Abstract

Purpose

The online platform is one of the essential components of the platform economy that is constructed by a large scale of the personal data resource. However, accurate empirical test of the competition structure of the data-driven online platform is still less. This research is trying to reveal market allocation structure of the personal data resource of China's car-hailing platforms competition by the empirical data analysis.

Design/methodology/approach

This research is applying the social network analysis by R packages, which include k-core decomposition and multilevel community detection from the data connectedness via the decompilation and the examination of the application programming interface of terminal applications.

Findings

This research has found that the car-hailing platforms, which establish more constant personal data connectedness and connectivity with social media platforms, are taking the competitive market advantage within the sample network. Data access discrimination is a complementary method of market power in China's car-hailing industry.

Research limitations/implications

This research offers a new perspective on the analysis of the multi-sided market from the personal data resource allocation mechanism of the car-hailing platform. However, the measurement of the data connectedness requires more empirical industry data.

Practical implications

This research reveals the competition structure that relies on personal data resource allocation mechanism. It offers empirical evidence for governance, which is considered as the critical issue of big data research, by reviewing the nature of the data network.

Social implications

It also reveals the data convergence process of the social system and the technological system.

Originality/value

This research offers a new research method for the real-time regulation of the car-hailing platform.

Details

Data Technologies and Applications, vol. 55 no. 2
Type: Research Article
ISSN: 2514-9288

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Article
Publication date: 19 December 2018

Milton Mueller and Karl Grindal

This paper aims to analyze the direction and balance of transnational information flows and look at how nonpriced digital information exchanges related to international trade in…

1558

Abstract

Purpose

This paper aims to analyze the direction and balance of transnational information flows and look at how nonpriced digital information exchanges related to international trade in goods and services.

Design/methodology/approach

The authors obtained quantitative data about Web-related data flows between countries and regions using Telegeography data on “Server Location as a Percentage of Top Websites.” They then explore how those flows are correlated to trade in goods.

Findings

Web traffic is highly transnational. More than half of the top 100 websites in 9 of the world’s 13 sub-regions are hosted in the USA. More than 15 per cent of the top 100 websites in 9 of the 13 subregions are hosted in Western Europe. East Asia has the largest negative balance in the relationship between incoming and outgoing Web requests. The authors found a very strong negative correlation (−0.878) between Web traffic balances and the balance of trade in goods across all subregions. A similarly strong positive correlation was found with services trade; however, the incompleteness of the data does not allow for strong conclusions yet.

Research limitations/implications

Further research is needed to correlate Web traffic flows with capital flows. The authors also do not have a well-developed theory to explain the strong negative correlation between information flows and goods trade.

Practical implications

The data and analysis have useful implications for digital economy policy. It indicates that digital protectionism of the sort practice by China may succeed in increasing domestic producers’ share of Web requests, but does not make them globally competitive. The strong negative correlation between the balance of unpriced Web information and the balance of trade in goods indicates interdependence rather than domination, challenging narratives that information flow imbalances are caused by market power of the big platforms.

Social implications

The paper demonstrates the degree to which unpriced digital exchanges are transnational and how various countries are more or less globally competitive in the supply of information that the rest of the world finds attractive.

Originality/value

No other published papers have used the data on website traffic data, and previous research has not explored empirically the correlation between information flows and goods trade.

Details

Digital Policy, Regulation and Governance, vol. 21 no. 1
Type: Research Article
ISSN: 2398-5038

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Article
Publication date: 1 July 1998

Ross Cullen

A policy of zero prices for entry to publicly provided parks and reserves treats people equally, but does not result in equitable outcomes. Entry to New Zealand parks and reserves…

580

Abstract

A policy of zero prices for entry to publicly provided parks and reserves treats people equally, but does not result in equitable outcomes. Entry to New Zealand parks and reserves is free, but usage of these areas is only weakly influenced by zero entry price. Travel costs and incomes are major determinants of usage of natural areas. All citizens of a country may receive benefits from the existence of parks and reserves, and the option to visit those areas. But visitors receive disproportionately more benefits than do non‐visitors, and can legitimately be asked to meet a greater share of the costs of these areas. Equity arguments do not provide a convincing basis for continuing with zero prices to users. Recent legislation recognises this argument and will push regional governments to identify beneficiaries of Regional Parks, and levy charges which ensure users meet a greater share of the costs of Regional Parks. Given the weakness of the equity case, alternative explanation must be sought for continued zero entry prices.

Details

International Journal of Social Economics, vol. 25 no. 6/7/8
Type: Research Article
ISSN: 0306-8293

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Available. Content available
Book part
Publication date: 11 December 2024

Free Access. Free Access

Abstract

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

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Article
Publication date: 10 July 2017

Donald P. Addison, Tony Lingham, Can Uslay and Olivia F. Lee

The purpose of this paper is to examine the entrepreneurial practice of intellectual capital sharing (ICS) with client organizations and assess its potential for collaborative…

1089

Abstract

Purpose

The purpose of this paper is to examine the entrepreneurial practice of intellectual capital sharing (ICS) with client organizations and assess its potential for collaborative business-to-business (B2B) relationship building. B2B collaborations within the traditional marketing paradigm are restricted due to perceived opportunism.

Design/methodology/approach

The research is based on the grounded theory approach and involves 22 semi-structured interviews with the employees of a focal organization and its five client organizations regarding 36 implemented projects. Interviews were transcribed, coded and analyzed via constant comparison to surface codes, categories, concepts and themes from which the authors developed propositions based on the particular context of this study.

Findings

ICS approach helps customers to reconstruct sellers’ identity from one characterized by opportunism and arm’s length relationships to one defined by openness and collaboration. Identified benefits of ICS include higher trust, commitment, social bonding, value co-creation, individual and organizational performance and learning. Eight propositions and a model of ICS consequences are presented.

Research limitations/implications

The context of the study is limited to a single industry – financial services – however, the findings should be highly relevant for other sales contexts characterized by low buyer trust.

Practical implications

Entrepreneurial marketers can engage in ICS approach quickly at minimal cost, as the capabilities and talent are typically already internal to the organization.

Originality/value

This paper examines a unique relational approach to serving clients called ICS that de-emphasizes the sale. Subject matter experts help buyers overcome challenges outside the scope of the traditional marketing paradigm.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 19 no. 1
Type: Research Article
ISSN: 1471-5201

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