Airbnb and New York City Reach a Truce on Home-Sharing Data

Curated on Posted on by Stefaan Verhulst

Paris Martineau at Wired: “For much of the past decade, Airbnb and New York City have been embroiled in a high-profile feud. Airbnb wants legitimacy in its biggest market. City officials want to limit home-sharing platforms, which they argue exacerbate the city’s housing crisis and pose safety risks by allowing people to transform homes into illegal hotels.

Despite years of lawsuits, countersuits, lobbying campaigns, and failed attempts at legislation, progress on resolving the dispute has been incremental at best. The same could be said for many cities around the nation, as local government officials struggle to come to grips with the increasing popularity of short-term rental platforms like Airbnb, HomeAway, and VRBO in high-tourism areas.

In New York last week, there were two notable breaks in the logjam. On May 14, Airbnb agreed to give city officials partially anonymized host and reservation data for more than 17,000 listings. Two days later, a judge ordered Airbnb to turn over more detailed and nonanonymized information on dozens of hosts and hundreds of guests who have listed or stayed in more than a dozen buildings in Manhattan, Brooklyn, and Queens in the past seven years.

In both cases, the information will be used by investigators with the Mayor’s Office of Special Enforcement to identify hosts and property owners who may have broken the city’s notoriously strict short-term rental laws by converting residences into de facto hotels by listing them on Airbnb.

City officials originally subpoenaed Airbnb for the data—not anonymized—on the more than 17,000 listings in February. Mayor Bill de Blasio called the move an effort to force the company to “come clean about what they’re actually doing in this city.” The agreement outlining the data sharing was signed as a compromise on May 14, according to court records.

In addition to the 17,000 listings identified by the city, Airbnb will also share data on every listing rented through its platform between January 1, 2018, and February 18, 2019, that could have potentially violated New York’s short-term rental laws. The city prohibits rentals of an entire apartment or home for less than 30 days without the owner present in the unit, making many stays traditionally associated with services like Airbnb, HomeAway, and VRBO illegal. Only up to two guests are permitted in the short-term rental of an apartment or room, and they must be given “free and unobstructed access to every room and to each exit within the apartment,” meaning hosts can’t get around the ban on whole-apartment rentals by renting out three separate private rooms at once….(More)”.

Smart Villages in the EU and Beyond

Curated on Posted on by Stefaan Verhulst

Book edited by Anna Visvizi, Miltiadis D. Lytras, and György Mudri: “Written by leading academics and practitioners in the field, Smart Villages in the EU and Beyond offers a detailed insight into issues and developments that shape the debate on smart villages, together with concepts, developments and policymaking initiatives including the EU Action for Smart Villages.This book derives from the realization that the implications of the increasing depopulation of rural areas across the EU is a pending disaster. This edited collection establishes a framework for action today, which will lead to sustainable revitalization of rural areas tomorrow.Using country-specific case studies, the chapters examine how integrated and ICT-conscious strategies and policy actions focused on wellbeing, sustainability and solidarity could provide a long-term solution in the revitalization of villages across the EU and elsewhere. Best practices pertinent to precision farming, energy diversification, tourism, entrepreneurship are discussed in detail.As an in-depth exploration of the Smart Village on a multinational scale, this book will serve as an indispensable resource for students, researchers and policy leaders in the fields of politics, strategic management and urban and rural studies….(More)”.

The State of Open Data

Curated on Posted on by Stefaan Verhulst

Open Access Book edited by Tim Davies, Stephen B. Walker, Mor Rubinstein and Fernando Perini: “It’s been ten years since open data first broke onto the global stage. Over the past decade, thousands of programmes and projects around the world have worked to open data and use it to address a myriad of social and economic challenges. Meanwhile, issues related to data rights and privacy have moved to the centre of public and political discourse. As the open data movement enters a new phase in its evolution, shifting to target real-world problems and embed open data thinking into other existing or emerging communities of practice, big questions still remain. How will open data initiatives respond to new concerns about privacy, inclusion, and artificial intelligence? And what can we learn from the last decade in order to deliver impact where it is most needed? 

The State of Open Data brings together over 60 authors from around the world to address these questions and to take stock of the real progress made to date across sectors and around the world, uncovering the issues that will shape the future of open data in the years to come….(More)”.

Nowcasting the Local Economy: Using Yelp Data to Measure Economic Activity

Curated on Posted on by Stefaan Verhulst

Paper by Edward L. Glaeser, Hyunjin Kim and Michael Luca: “Can new data sources from online platforms help to measure local economic activity? Government datasets from agencies such as the U.S. Census Bureau provide the standard measures of local economic activity at the local level. However, these statistics typically appear only after multi-year lags, and the public-facing versions are aggregated to the county or ZIP code level. In contrast, crowdsourced data from online platforms such as Yelp are often contemporaneous and geographically finer than official government statistics. Glaeser, Kim, and Luca present evidence that Yelp data can complement government surveys by measuring economic activity in close to real time, at a granular level, and at almost any geographic scale. Changes in the number of businesses and restaurants reviewed on Yelp can predict changes in the number of overall establishments and restaurants in County Business Patterns. An algorithm using contemporaneous and lagged Yelp data can explain 29.2 percent of the residual variance after accounting for lagged CBP data, in a testing sample not used to generate the algorithm. The algorithm is more accurate for denser, wealthier, and more educated ZIP codes….(More)”.

See all papers presented at the NBER Conference on Big Data for 21st Century Economic Statistics here.

Trust, Control, and the Economics of Governance

Curated on Posted on by Stefaan Verhulst

Book by Philipp Herold: “In today’s world, we cooperate across legal and cultural systems in order to create value. However, this increases volatility, uncertainty, complexity, and ambiguity as challenges for societies, politics, and business. This has made governance a scarce resource. It thus is inevitable that we understand the means of governance available to us and are able to economize on them. Trends like the increasing role of product labels and a certification industry as well as political movements towards nationalism and conservatism may be seen as reaction to disappointments from excessive cooperation. To avoid failures of cooperation, governance is important – control through e.g. contracts is limited and in governance economics trust is widely advertised without much guidance on its preconditions or limits.

This book draws on the rich insight from research on trust and control, and accommodates the key results for governance considerations in an institutional economics framework. It provides a view on the limits of cooperation from the required degree of governance, which can be achieved through extrinsic motivation or building on intrinsic motivation. Trust Control Economics thus inform a more realistic expectation about the net value added from cooperation by providing a balanced view including the cost of governance. It then becomes clear how complex cooperation is about ‘governance accretion’ where limited trustworthiness is substituted by control and these control instances need to be governed in turn.

Trust, Control, and the Economics of Governance is a highly necessary development of institutional economics to reflect progress made in trust research and is a relevant addition for practitioners to better understand the role of trust in the governance of contemporary cooperation-structures. It will be of interest to researchers, academics, and students in the fields of economics and business management, institutional economics, and business ethics….(More)”.

The Importance of Data Access Regimes for Artificial Intelligence and Machine Learning

Curated on Posted on by Stefaan Verhulst

JRC Digital Economy Working Paper by Bertin Martens: “Digitization triggered a steep drop in the cost of information. The resulting data glut created a bottleneck because human cognitive capacity is unable to cope with large amounts of information. Artificial intelligence and machine learning (AI/ML) triggered a similar drop in the cost of machine-based decision-making and helps in overcoming this bottleneck. Substantial change in the relative price of resources puts pressure on ownership and access rights to these resources. This explains pressure on access rights to data. ML thrives on access to big and varied datasets. We discuss the implications of access regimes for the development of AI in its current form of ML. The economic characteristics of data (non-rivalry, economies of scale and scope) favour data aggregation in big datasets. Non-rivalry implies the need for exclusive rights in order to incentivise data production when it is costly. The balance between access and exclusion is at the centre of the debate on data regimes. We explore the economic implications of several modalities for access to data, ranging from exclusive monopolistic control to monopolistic competition and free access. Regulatory intervention may push the market beyond voluntary exchanges, either towards more openness or reduced access. This may generate private costs for firms and individuals. Society can choose to do so if the social benefits of this intervention outweigh the private costs.

We briefly discuss the main EU legal instruments that are relevant for data access and ownership, including the General Data Protection Regulation (GDPR) that defines the rights of data subjects with respect to their personal data and the Database Directive (DBD) that grants ownership rights to database producers. These two instruments leave a wide legal no-man’s land where data access is ruled by bilateral contracts and Technical Protection Measures that give exclusive control to de facto data holders, and by market forces that drive access, trade and pricing of data. The absence of exclusive rights might facilitate data sharing and access or it may result in a segmented data landscape where data aggregation for ML purposes is hard to achieve. It is unclear if incompletely specified ownership and access rights maximize the welfare of society and facilitate the development of AI/ML…(More)”

Illuminating Big Data will leave governments in the dark

Curated on Posted on by Stefaan Verhulst

Robin Wigglesworth in the Financial Times: “Imagine a world where interminable waits for backward-looking, frequently-revised economic data seem as archaically quaint as floppy disks, beepers and a civil internet. This fantasy realm may be closer than you think.

The Bureau of Economic Analysis will soon publish its preliminary estimate for US economic growth in the first three months of the year, finally catching up on its regular schedule after a government shutdown paralysed the agency. But other data are still delayed, and the final official result for US gross domestic product won’t be available until July. Along the way there are likely to be many tweaks.

Collecting timely and accurate data are a Herculean task, especially for an economy as vast and varied as the US’s. But last week’s World Bank-International Monetary Fund’s annual spring meetings offered some clues on a brighter, more digital future for economic data.

The IMF hosted a series of seminars and discussions exploring how the hot new world of Big Data could be harnessed to produce more timely economic figures — and improve economic forecasts. Jiaxiong Yao, an IMF official in its African department, explained how it could use satellites to measure the intensity of night-time lights, and derive a real-time gauge of economic health.

“If a country gets brighter over time, it is growing. If it is getting darker then it probably needs an IMF programme,” he noted. Further sessions explored how the IMF could use machine learning — a popular field of artificial intelligence — to improve its influential but often faulty economic forecasts; and real-time shipping data to map global trade flows.

Sophisticated hedge funds have been mining some of these new “alternative” data sets for some time, but statistical agencies, central banks and multinational organisations such as the IMF and the World Bank are also starting to embrace the potential.

The amount of digital data around the world is already unimaginably vast. As more of our social and economic activity migrates online, the quantity and quality is going to increase exponentially. The potential is mind-boggling. Setting aside the obvious and thorny privacy issues, it is likely to lead to a revolution in the world of economic statistics. …

Yet the biggest issues are not the weaknesses of these new data sets — all statistics have inherent flaws — but their nature and location.

Firstly, it depends on the lax regulatory and personal attitudes towards personal data continuing, and there are signs of a (healthy) backlash brewing.

Secondly, almost all of this alternative data is being generated and stored in the private sector, not by government bodies such as the Bureau of Economic Analysis, Eurostat or the UK’s Office for National Statistics.

Public bodies are generally too poorly funded to buy or clean all this data themselves, meaning hedge funds will benefit from better economic data than the broader public. We might, in fact, need legislation mandating that statistical agencies receive free access to any aggregated private sector data sets that might be useful to their work.

That would ensure that our economic officials and policymakers don’t fly blind in an increasingly illuminated world….(More)”.

The Technology Fallacy: How People Are the Real Key to Digital Transformation

Curated on Posted on by Stefaan Verhulst

Book by Gerald C. Kane, Anh Nguyen Phillips, Jonathan R. Copulsky and Garth R. Andrus: “Digital technologies are disrupting organizations of every size and shape, leaving managers scrambling to find a technology fix that will help their organizations compete. This book offers managers and business leaders a guide for surviving digital disruptions—but it is not a book about technology. It is about the organizational changes required to harness the power of technology. The authors argue that digital disruption is primarily about people and that effective digital transformation involves changes to organizational dynamics and how work gets done. A focus only on selecting and implementing the right digital technologies is not likely to lead to success. The best way to respond to digital disruption is by changing the company culture to be more agile, risk tolerant, and experimental.

The authors draw on four years of research, conducted in partnership with MIT Sloan Management Review and Deloitte, surveying more than 16,000 people and conducting interviews with managers at such companies as Walmart, Google, and Salesforce. They introduce the concept of digital maturity—the ability to take advantage of opportunities offered by the new technology—and address the specifics of digital transformation, including cultivating a digital environment, enabling intentional collaboration, and fostering an experimental mindset. Every organization needs to understand its “digital DNA” in order to stop “doing digital” and start “being digital.”

Digital disruption won’t end anytime soon; the average worker will probably experience numerous waves of disruption during the course of a career. The insights offered by The Technology Fallacy will hold true through them all….(More)”.

Credit denial in the age of AI

Curated on Posted on by Stefaan Verhulst

Paper by Aaron Klein: “Banks have been in the business of deciding who is eligible for credit for centuries. But in the age of artificial intelligence (AI), machine learning (ML), and big data, digital technologies have the potential to transform credit allocation in positive as well as negative directions. Given the mix of possible societal ramifications, policymakers must consider what practices are and are not permissible and what legal and regulatory structures are necessary to protect consumers against unfair or discriminatory lending practices.

In this paper, I review the history of credit and the risks of discriminatory practices. I discuss how AI alters the dynamics of credit denials and what policymakers and banking officials can do to safeguard consumer lending. AI has the potential to alter credit practices in transformative ways and it is important to ensure that this happens in a safe and prudent manner….(More)”.

Statistics Estonia to coordinate data governance

Curated on Posted on by Stefaan Verhulst

Article by Miriam van der Sangen at CBS: “In 2018, Statistics Estonia launched a new strategy for the period 2018-2022. This strategy addresses the organisation’s aim to produce statistics more quickly while minimising the response burden on both businesses and citizens. Another element in the strategy is addressing the high expectations in Estonian society regarding the use of data. ‘We aim to transform Statistics Estonia into a national data agency,’ says Director General Mägi. ‘This means our role as a producer of official statistics will be enlarged by data governance responsibilities in the public sector. Taking on such responsibilities requires a clear vision of the whole public data ecosystem and also agreement to establish data stewards in most public sector institutions.’…

the Estonian Parliament passed new legislation that effectively expanded the number of official tasks for Statistics Estonia. Mägi elaborates: ‘Most importantly, we shall be responsible for coordinating data governance. The detailed requirements and conditions of data governance will be specified further in the coming period.’ Under the new Act, Statistics Estonia will also have more possibilities to share data with other parties….

Statistics Estonia is fully committed to producing statistics which are based on big data. Mägi explains: ‘At the moment, we are actively working on two big data projects. One project involves the use of smart electricity meters. In this project, we are looking into ways to visualise business and household electricity consumption information. The second project involves web scraping of prices and enterprise characteristics. This project is still in an initial phase, but we can already see that the use of web scraping can improve the efficiency of our production process.’ We are aiming to extend the web scraping project by also identifying e-commerce and innovation activities of enterprises.’

Yet another ambitious goal for Statistics Estonia lies in the field of data science. ‘Similarly to Statistics Netherlands, we established experimental statistics and data mining activities years ago. Last year, we developed a so-called think-tank service, providing insights from data into all aspects of our lives. Think of birth, education, employment, et cetera. Our key clients are the various ministries, municipalities and the private sector. The main aim in the coming years is to speed up service time thanks to visualisations and data lake solutions.’ …(More)”.