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Research on Motivation and Regulation of Big Data "Slaughter" Behavior

Published: 03 May 2020 Publication History

Abstract

Big data "killing" as a new manifestation of price discrimination in the era of big data refers to the service provider as a party with information superiority, using the large amount of customer information flow to distinguish the pricing of each individual consumer. Consumer surplus value may be captured, which seriously reduces the level of consumer welfare. Internet companies with monopoly status such as Amazon, Didi, and Orbitz have all been expelled to adopt a pricing strategy of big data. However, the existing literature mainly discusses how to regulate big data at the legal level, and there is less discussion about big data killing itself as a kind of primary price discrimination phenomenon. This article aims to address the following two questions: 1) What is the motivation behind the vendor's big data killing strategy? 2) How to regulate from the perspective of network economics for big data killing? In the discussion of the first problem, using the mathematical modeling method to start the profit maximization by the monopolist, the local aggregation coefficient in the network is used to describe the risk of the manufacturer adopting the big data killing strategy, so that it is not adopted. The profit of the killing strategy and the expected profit of adopting the killing strategy are the motivation of the manufacturer to adopt the big data killing strategy. In the discussion of the second question, taking the comparison between the expected profit of the killing strategy and the profit under normal operation as the starting point, explore how to use the degree of communication between consumers and rationally introduce the competitive market to smash the big data. Conduct regulation. Finally, this paper studies the interdisciplinary issue and provides the relevant government departments with the idea of regulating big data killing strategies under the perspective of network economics.

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  1. Research on Motivation and Regulation of Big Data "Slaughter" Behavior

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    IC4E '20: Proceedings of the 2020 11th International Conference on E-Education, E-Business, E-Management, and E-Learning
    January 2020
    441 pages
    ISBN:9781450372947
    DOI:10.1145/3377571
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    • Ritsumeikan University: Ritsumeikan University

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    New York, NY, United States

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    Published: 03 May 2020

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    Author Tags

    1. Big data killing
    2. clustering coefficient
    3. consumer surplus
    4. full price discrimination

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