The Data Provision Game: Researching Revenue Sharing in Collaborative Data Networks

TLDR: The data provision game is developed based on a synthesized view of data value chains as a mathematical framework to analyze the economic interactions and incentives in a collaborative data network and emphasizes revenue sharing as an important managing activity.

Abstract: Data sharing between companies enables formerly unexploited potential for data-driven business applications. While it is clear how the owner of the business application will profit from the shared data, it is still in question how other stakeholders are incentivized to share data across company borders. We developed the data provision game based on a synthesized view of data value chains as a mathematical framework to analyze the economic interactions and incentives in a collaborative data network. We thereby emphasize revenue sharing as an important managing activity as everyone who contributes to a business application should profit from it in order to set right incentives. Further, we differentiate between entity-borne and network-borne activities. Finally, we formulated Shapley Pricing and Leave-One-Out Pricing as two options for revenue sharing mechanisms, which set incentives for welfare-optimal participation and data quality.