Game theory approach finds some public benefit to platforms like Google and Waze collecting user data

Core Findings - Researchers from Tel Aviv University used game theory to demonstrate that allowing platforms to retain decision-making power over user data collection and commercialization can enhance overall welfare in certain situations [1][2] - The study was conducted by Prof Yaron Yehezkel from Tel Aviv University and Prof Sarit Markovich from Northwestern University, published in the Journal of Economics & Management Strategy [2] Data Collection Models - The American model grants platforms full discretion over data collection and usage, with users relinquishing control upon agreeing to platform terms [4] - The European model, under GDPR, allows users to retain control over their data and decide how it is used while still accessing the platform [5] Social vs Economic Value of Data - Data has both negative aspects (privacy infringement) and positive aspects (improving platform services for all users) [7] - Platforms like Waze and Spotify use collected data to provide better services, such as guiding drivers to less congested routes or recommending music based on listening habits [10] - The study identifies scenarios where data provides social value versus purely economic value, with the American model offering significant benefits in cases of high social value and less sensitive data [9] Theoretical Approach - The research used game theory to model user and platform behavior through mathematical utility functions reflecting societal benefit and company profit [6] - The study demonstrated that data has not only economic value but also social value, with platforms using collected data to improve services for other users [8]