TILEC Work In Progress: Tobias Klein

Main presenter: Tobias Klein; others: Jens Prüfer, Madina Kurmangaliyeva, Patricia Prüfer

In data-driven markets, large firms have a competitive advantage because they have exclusive access to the data that are generated by their customers. In such a situation mandatory data-sharing could be welfare-improving, because it would ensure that more than one firm will be able to stay active in the market. In this paper, we propose an empirical framework that can be used to assess whether a market is data-driven. We explain which empirical objects need to be estimated. Then, we show how these estimates can be combined to test whether a market is data-driven. The market for internet search serves as our leading example.