Negative Externality of the Data Collection and Its Governing Methods

Abstract

In this paper, we aim at finding out the mechanism of the negative externality of governance in the process of data collection. In the big data age, data collection is the key link of data value mining. Using “public” and “externality” of public economics theory to carry out empirical analysis, on the one hand, the technology innovation produced by data collection brings huge positive externalities, but at the same time the Temptation of potential data set, may bring about the excessive behavior of value mining, which may cause the negative externalities that endanger the privacy of citizens. In order to make data collection and use of compliance reasonable, the author intends to design the system arrangement of “negative externality internalization” from the aspects of externality marketization and public management mode: (1) To establish industry data Alliance or data benefit community, and then design data security protocol and restriction, which need to be placed on the agenda, (2) the responsibility of negative externalities should be shifted to the data set users, and the relief responsibility of the government as trustee should be clarified through the design of legal system. All of the above are used to circumvent the potential social costs above private costs.