Data markets are structurally broken because data does not behave like land, labor, or capital.
Traditional economic tools fail to fix data monopolies because information can be used by many people at once without being used up. Markets for data are naturally opaque and gain value only when combined with other specific datasets. This creates a permanent state of polarization where a few companies hold all the power and others cannot compete. Standard antitrust laws are useless in this environment because the core resource follows different mathematical rules. We need a completely new theory of value to prevent the data economy from collapsing into a permanent hierarchy.
The Market Equilibrium of Data as a Production Factor
research_square · rs-9528490
Abstract We establish the first complete microeconomic theory of data factor market equilibrium. Data possesses three properties no prior productive factor simultaneously exhibits: non-rivalry (the same dataset serves multiple producers without diminution), pre-trade opacity with irreversible disclosure (buyers cannot assess value before acquisition, making adverse selection more fundamental than in conventional markets), and combinatorial value (the marginal product of data increases strictly w