The Value of Personal Data in Internet Commerce: A High-Stakes Field Experiment on Data Regulation Policy

被引：0
作者：
Sun T. [1 ,2 ]
Yuan Z. [3 ]
Li C. [4 ]
Zhang K. [4 ]
Xu J. [4 ]
机构：
[1] Cheung Kong Graduate School of Business, Beijing
[2] Department of Data Sciences and Operations, Marshall School of Business, University of Southern California, Los Angeles, 90089, CA
[3] School of Economics, Future Regional Development Laboratory, Center for Research of Private Economy, Zhejiang University, Hangzhou
[4] Alibaba Group, Hangzhou
来源：
Management Science | 2024年 / 70卷 / 04期
基金：
中国国家自然科学基金;
关键词：
data regulation; e-commerce; field experiments; personal data; privacy;
D O I：
10.1287/MNSC.2023.4828
中图分类号：
学科分类号：
摘要：
Personal data have become a key input in internet commerce, facilitating the matching between millions of customers and merchants. Recent data regulations in China, Europe, and the United States restrict internet platforms’ ability to collect and use personal data for personalized recommendation and may fundamentally impact internet commerce. In collaboration with the largest e-commerce platform in China, we conduct a large-scale field experiment to measure the potential impact of data regulation policy and to understand the value of personal data in internet commerce. For a random subset of 555,800 customers on the Alibaba platform, we simulate the regulation by banning the use of personal data in the home page recommendation algorithm and record the matching process and outcomes between these customers and merchants. Compared with the control group with personal data, we observe a significantly higher concentration in the algorithmic recommendation of products in the treatment group and a very sharp decrease in the matching outcomes as measured by both customer engagement (click-through rate and product browsing) and market transaction (sales volume and amount). The negative effect is disproportionate and more pronounced for niche merchants and customers who would benefit more from e-commerce. We discuss the potential economic impact of data regulation on internet commerce as well as the role of personal data in generating value and fostering long-tail innovations. © 2023 INFORMS.
引用
收藏
页码：2645 / 2660
页数：15
相关论文
共 91 条
  • [1] Abowd JM, Schmutte IM, An economic analysis of privacy protection and statistical accuracy as social choices, Amer. Econom. Rev, 109, 1, pp. 171-202, (2019)
  • [2] Acquisti A, Brandimarte L, Loewenstein G, Privacy and human behavior in the age of information, Science, 347, 6221, pp. 509-514, (2015)
  • [3] Acquisti A, Taylor C, Wagman L, The economics of privacy, J. Econom. Literature, 54, 2, pp. 442-492, (2016)
  • [4] Adamopoulos P, Tuzhilin A, Recommendation opportunities: Improving item prediction using weighted percentile methods in collaborative filtering systems. Yang Q, King I, Li Q, Pu P, Karypis G, General and Program Chairs, Proc. Seventh ACM Conf. Recommender Systems (RecSys ‘13), (2013)
  • [5] Adjerid I, Acquisti A, Telang R, Padman R, Adler-Milstein J, The impact of privacy regulation and technology incentives: The case of health information exchanges, Management Sci, 62, 4, pp. 1042-1063, (2016)
  • [6] Adomavicius G, Tuzhilin A, Toward the next generation of recommender systems: A survey of the state-of-the-art and possible extensions, IEEE Trans. Knowledge Data Engrg, 17, 6, pp. 734-749, (2005)
  • [7] Ascarza E, Retention futility: Targeting high-risk customers might be ineffective, J. Marketing Res, 55, 1, pp. 80-98, (2018)
  • [8] Azevedo E, Weyl G, Matching markets in the digital age, Science, 352, 6289, pp. 1056-1057, (2016)
  • [9] Aziz A, Telang R, What is a digital cookie worth? Preprint, (2016)
  • [10] Bakos Y, Reducing buyer search costs: Implications for electronic marketplaces, Management Sci, 43, 12, pp. 1676-1692, (1997)
12345678910