Paper by Maria Savona: “This note attempts a systematisation of different pieces of literature that underpin the recent policy and academic debate on the value of data. It mainly poses foundational questions around the definition, economic nature and measurement of data value, and discusses the opportunity to redistribute it. It then articulates a framework to compare ways of implementing redistribution, distinguishing between data as capital, data as labour or data as an intellectual property. Each of these raises challenges, revolving around the notions of data property and data rights, that are also briefly discussed. The note concludes by indicating areas for policy considerations and a research agenda to shape the future structure of data governance more at large….(More)”.
Restrictions on Privacy and Exploitation in the Digital Economy: A Competition Law Perspective
Paper by Nicholas Economides and Ioannis Lianos: “The recent controversy on the intersection of competition law with the protection of privacy, following the emergence of big data and social media is a major challenge for competition authorities worldwide. Recent technological progress in data analytics may greatly facilitate the prediction of personality traits and attributes from even a few digital records of human behaviour.
There are different perspectives globally as to the level of personal data protection and the role competition law may play in this context, hence the discussion of integrating such concerns in competition law enforcement may be premature for some jurisdictions. However, a market failure approach may provide common intellectual foundations for the assessment of harms associated to the exploitation of personal data, even when the specific legal system does not formally recognize a fundamental right to privacy.
The paper presents a model of market failure based on a requirement provision in the acquisition of personal information from users of other products/services. We establish the economic harm from the market failure and the requirement using the traditional competition law toolbox and focusing more on situations in which the restriction on privacy may be analysed as a form of exploitation. Eliminating the requirement and the market failure by creating a functioning market for the sale of personal information is imperative. This emphasis on exploitation does not mean that restrictions on privacy may not result from exclusionary practices. However, we analyse this issue in a separate study.
Besides the traditional analysis of the requirement and market failure, we note that there are typically informational asymmetries between the data controller and the data subject. The latter may not be aware that his data was harvested, in the first place, or that the data will be processed by the data controller for a different purpose or shared and sold to third parties. The exploitation of personal data may also result from economic coercion, on the basis of resource-dependence or lock-in of the user, the latter having no other choice, in order to enjoy the consumption of a specific service provided by the data controller or its ecosystem, in particular in the presence of dominance, than to consent to the harvesting and use of his data. A behavioural approach would also emphasise the possible internalities (demand-side market failures) coming out of the bounded rationality, or the fact that people do not internalise all consequences of their actions and face limits in their cognitive capacities.
The paper also addresses the way competition law could engage with exploitative conduct leading to privacy harm, both for ex ante and ex post enforcement.
With regard to ex ante enforcement, the paper explores how privacy concerns may be integrated in merger control as part of the definition of product quality, the harm in question being merely exploitative (the possibility the data aggregation provides to the merged entity to exploit (personal) data in ways that harm directly consumers), rather than exclusionary (harming consumers by enabling the merged entity to marginalise a rival with better privacy policies), which is examined in a separate paper.
With regard to ex post enforcement, the paper explores different theories of harm that may give rise to competition law concerns and suggest specific tests for their assessment. In particular, we analyse old and new exploitative theories of harm relating to excessive data extraction, personalised pricing, unfair commercial practices and trading conditions, exploitative requirement contracts, behavioural manipulation.
We are in favour of collective action to restore the conditions of a well-functioning data market and the paper makes several policy recommendations….(More)”.
Could AI Drive Transformative Social Progress? What Would This Require?
Paper by Edward (Ted) A. Parson et al: “In contrast to popular dystopian speculation about the societal impacts of widespread AI deployment, we consider AI’s potential to drive a social transformation toward greater human liberty, agency, and equality. The impact of AI, like all technology, will depend on both properties of the technology and the economic, social, and political conditions of its deployment and use. We identify conditions of each type – technical characteristics and socio-political context – likely to be conducive to such large-scale beneficial impacts.
Promising technical characteristics include decision-making structures that are tentative and pluralistic, rather than optimizing a single-valued objective function under a single characterization of world conditions; and configuring the decision-making of AI-enabled products and services exclusively to advance the interests of their users, subject to relevant social values, not those of their developers or vendors. We explore various strategies and business models for developing and deploying AI-enabled products that incorporate these characteristics, including philanthropic seed capital, crowd-sourcing, open-source development, and sketch various possible ways to scale deployment thereafter….(More)”.
Type, tweet, tap, and pass: How smart city technology is creating a transactional citizen
Paper by Peter A.Johnson, Pamela J.Robinson, andSimonePhilpot: “In the current push for smart city programs around the world, there is a significant focus on enabling transactions between citizen and government. Though traditionally there have always been transactional elements between government and citizen, for example payment of taxes in exchange for services, or voting in exchange for representation, the rise of modern smartphone and smart city technologies have further enabled micro-transactions between citizen, government, and information broker. We conceptualize how the modern smart city, as both envisaged and enacted, incorporates the citizen not necessarily as a whole actor, but as a series of micro-transactions encoded on the real-time landscape of the city. This transactional citizen becomes counted by smart city sensors and integrated into smart city decision-making through the use of certain preferred platforms.
To approach this shift from traditional forms of citizen/city interaction towards micro-transactions, we conceptualize four broad modes of transaction; type (intentional contribution), tweet (intermediated by third party), tap (convened or requested transaction), and pass (ambient transaction based on movement). These four modes are used to frame critical questions of how citizens interact with government in the emerging age of the smart city, and how these interactions impact the relationship between citizen and government, introducing new avenues for private sector influence….(More)”
User Data as Public Resource: Implications for Social Media Regulation
Paper by Philip Napoli: “Revelations about the misuse and insecurity of user data gathered by social media platforms have renewed discussions about how best to characterize property rights in user data. At the same time, revelations about the use of social media platforms to disseminate disinformation and hate speech have prompted debates over the need for government regulation to assure that these platforms serve the public interest. These debates often hinge on whether any of the established rationales for media regulation apply to social media. This article argues that the public resource rationale that has been utilized in traditional media regulation in the United States applies to social media.
The public resource rationale contends that, when a media outlet utilizes a public resource—such as the broadcast spectrum, or public rights of way—the outlet must abide by certain public interest obligations that may infringe upon its First Amendment rights. This article argues that aggregate user data can be conceptualized as a public resource that triggers the application of a public interest regulatory framework to social media sites and other digital platforms that derive their revenue from the gathering, sharing, and monetization of massive aggregations of user data….(More)”.
Overbooked and Overlooked: Machine Learning and Racial Bias in Medical Appointment Scheduling
Paper by Michele Samorani et al: “Machine learning is often employed in appointment scheduling to identify the patients with the greatest no-show risk, so as to schedule them into overbooked slots, and thereby maximize the clinic performance, as measured by a weighted sum of all patients’ waiting time and the provider’s overtime and idle time. However, if the patients with the greatest no-show risk belong to the same demographic group, then that demographic group will be scheduled in overbooked slots disproportionately to the general population. This is problematic because patients scheduled in those slots tend to have a worse service experience than the other patients, as measured by the time they spend in the waiting room. Such negative experience may decrease patient’s engagement and, in turn, further increase no-shows. Motivated by the real-world case of a large specialty clinic whose black patients have a higher no-show probability than non-black patients, we demonstrate that combining machine learning with scheduling optimization causes racial disparity in terms of patient waiting time. Our solution to eliminate this disparity while maintaining the benefits derived from machine learning consists of explicitly including the objective of minimizing racial disparity. We validate our solution method both on simulated data and real-world data, and find that racial disparity can be completely eliminated with no significant increase in scheduling cost when compared to the traditional predictive overbooking framework….(More)”.
Artificial Discretion as a Tool of Governance: A Framework for Understanding the Impact of Artificial Intelligence on Public Administration
Paper by Matthew M Young, Justin B Bullock, and Jesse D Lecy in Perspectives on Public Management and Governance: “Public administration research has documented a shift in the locus of discretion away from street-level bureaucrats to “systems-level bureaucracies” as a result of new information communication technologies that automate bureaucratic processes, and thus shape access to resources and decisions around enforcement and punishment. Advances in artificial intelligence (AI) are accelerating these trends, potentially altering discretion in public management in exciting and in challenging ways. We introduce the concept of “artificial discretion” as a theoretical framework to help public managers consider the impact of AI as they face decisions about whether and how to implement it. We operationalize discretion as the execution of tasks that require nontrivial decisions. Using Salamon’s tools of governance framework, we compare artificial discretion to human discretion as task specificity and environmental complexity vary. We evaluate artificial discretion with the criteria of effectiveness, efficiency, equity, manageability, and political feasibility. Our analysis suggests three principal ways that artificial discretion can improve administrative discretion at the task level: (1) increasing scalability, (2) decreasing cost, and (3) improving quality. At the same time, artificial discretion raises serious concerns with respect to equity, manageability, and political feasibility….(More)”.
Benefits of Open Data in Public Health
Paper by P. Huston, VL. Edge and E. Bernier: “Open Data is part of a broad global movement that is not only advancing science and scientific communication but also transforming modern society and how decisions are made. What began with a call for Open Science and the rise of online journals has extended to Open Data, based on the premise that if reports on data are open, then the generated or supporting data should be open as well. There have been a number of advances in Open Data over the last decade, spearheaded largely by governments. A real benefit of Open Data is not simply that single databases can be used more widely; it is that these data can also be leveraged, shared and combined with other data. Open Data facilitates scientific collaboration, enriches research and advances analytical capacity to inform decisions. In the human and environmental health realms, for example, the ability to access and combine diverse data can advance early signal detection, improve analysis and evaluation, inform program and policy development, increase capacity for public participation, enable transparency and improve accountability. However, challenges remain. Enormous resources are needed to make the technological shift to open and interoperable databases accessible with common protocols and terminology. Amongst data generators and users, this shift also involves a cultural change: from regarding databases as restricted intellectual property, to considering data as a common good. There is a need to address legal and ethical considerations in making this shift. Finally, along with efforts to modify infrastructure and address the cultural, legal and ethical issues, it is important to share the information equitably and effectively. While there is great potential of the open, timely, equitable and straightforward sharing of data, fully realizing the myriad of benefits of Open Data will depend on how effectively these challenges are addressed….(More)”.
Dissecting racial bias in an algorithm used to manage the health of populations
Paper by Ziad Obermeyer, Brian Powers, Christine Vogeli, and Sendhil Mullainathan in Science: “Health systems rely on commercial prediction algorithms to identify and help patients with complex health needs. We show that a widely used algorithm, typical of this industry-wide approach and affecting millions of patients, exhibits significant racial bias: At a given risk score, Black patients are considerably sicker than White patients, as evidenced by signs of uncontrolled illnesses. Remedying this disparity would increase the percentage of Black patients receiving additional help from 17.7 to 46.5%. The bias arises because the algorithm predicts health care costs rather than illness, but unequal access to care means that we spend less money caring for Black patients than for White patients. Thus, despite health care cost appearing to be an effective proxy for health by some measures of predictive accuracy, large racial biases arise. We suggest that the choice of convenient, seemingly effective proxies for ground truth can be an important source of algorithmic bias in many contexts….(More)”.
From Transactions Data to Economic Statistics: Constructing Real-Time, High-Frequency, Geographic Measures of Consumer Spending
Paper by Aditya Aladangady et al: “Access to timely information on consumer spending is important to economic policymakers. The Census Bureau’s monthly retail trade survey is a primary source for monitoring consumer spending nationally, but it is not well suited to study localized or short-lived economic shocks. Moreover, lags in the publication of the Census estimates and subsequent, sometimes large, revisions diminish its usefulness for real-time analysis. Expanding the Census survey to include higher frequencies and subnational detail would be costly and would add substantially to respondent burden. We take an alternative approach to fill these information gaps. Using anonymized transactions data from a large electronic payments technology company, we create daily estimates of retail spending at detailed geographies. Our daily estimates are available only a few days after the transactions occur, and the historical time series are available from 2010 to the present. When aggregated to the national leve l, the pattern of monthly growth rates is similar to the official Census statistics. We discuss two applications of these new data for economic analysis: First, we describe how our monthly spending estimates are useful for real-time monitoring of aggregate spending, especially during the government shutdown in 2019, when Census data were delayed and concerns about the economy spiked. Second, we show how the geographic detail allowed us quantify in real time the spending effects of Hurricanes Harvey and Irma in 2017….(More)”.