Publicizing Corporate Secrets for Public Good

Curated on Posted on by Stefaan Verhulst

Paper by Christopher Morten: “Federal regulatory agencies in the United States hold a treasure trove of valuable information essential to a functional society. Yet little of this immense and nominally “public” resource is accessible to the public. That worrying phenomenon is particularly true for the valuable information that agencies hold on powerful private actors. Corporations regularly shield vast swaths of the information they share with federal regulatory agencies from public view, claiming that the information contains legally protected trade secrets (or other proprietary “confidential commercial information”). Federal agencies themselves have largely acceded to these claims and even fueled them, by construing restrictively various doctrines of law, including trade secrecy law, freedom of information law, and constitutional law. Today, these laws—and fear of these laws—have reduced to a trickle the flow of information that the public can access. This should not and need not be the case.

This article challenges the conventional wisdom that trade secrecy law restricts public agencies’ power to publicize private businesses’ secrets. In fact, federal agencies, and regulatory agencies especially, have long held and still hold statutory and constitutional authority to obtain and divulge otherwise secret information on private actors, when doing so serves the public interest. For many regulatory agencies, that authority extends even to bona fide trade secrets. In an age of “informational capitalism,” this disclosure authority makes U.S. federal regulatory agencies uniquely valuable—and perhaps uniquely dangerous. Building on recent work that explores this right in the context of drugs and vaccines, and drawing heavily from scholarship in privacy and information law, the article proposes a practical framework that regulators can use to publicize secret information in a way that maximizes public benefit and minimizes private harm. Rather than endorse unconstrained information disclosure—transparency for transparency’s sake—this article instead proposes controlled “information publicity,” in which regulators cultivate carefully bounded “gardens” of secret information. Within these gardens, agencies admit only certain users and certain uses of information. Drawing on existing but largely overlooked real-world examples, the article shows that regulators can effectively and selectively publicize trade secret information to noncommercial users while thwarting commercial uses. Regulators can protect trade secrets’ integrity vis-à-vis competitors while simultaneously unlocking new, socially valuable uses…(More)”.

Mapping of exposed water tanks and swimming pools based on aerial images can help control dengue

Curated on Posted on by Stefaan Verhulst

Press Release by Fundação de Amparo à Pesquisa do Estado de São Paulo: “Brazilian researchers have developed a computer program that locates swimming pools and rooftop water tanks in aerial photographs with the aid of artificial intelligence to help identify areas vulnerable to infestation by Aedes aegypti, the mosquito that transmits dengue, zika, chikungunya and yellow fever. 

The innovation, which can also be used as a public policy tool for dynamic socio-economic mapping of urban areas, resulted from research and development work by professionals at the University of São Paulo (USP), the Federal University of Minas Gerais (UFMG) and the São Paulo State Department of Health’s Endemic Control Superintendence (SUCEN), as part of a project supported by FAPESP. An article about it is published in the journal PLOS ONE. 

“Our work initially consisted of creating a model based on aerial images and computer science to detect water tanks and pools, and to use them as a socio-economic indicator,” said Francisco Chiaravalloti Neto, last author of the article. He is a professor in the Epidemiology Department at USP’s School of Public Health (FSP), with a first degree in engineering. 

As the article notes, previous research had already shown that dengue tends to be most prevalent in deprived urban areas, so that prevention of dengue, zika and other diseases transmitted by the mosquito can be made considerably more effective by use of a relatively dynamic socio-economic mapping model, especially given the long interval between population censuses in Brazil (ten years or more). 

“This is one of the first steps in a broader project,” Chiaravalloti Neto said. Among other aims, he and his team plan to detect other elements of the images and quantify real infestation rates in specific areas so as to be able to refine and validate the model. 

“We want to create a flow chart that can be used in different cities to pinpoint at-risk areas without the need for inspectors to call on houses, buildings and other breeding sites, as this is time-consuming and a waste of the taxpayer’s money,” he added…(More)”.

Crowdsourcing and COVID-19: How public administrations mobilize crowds to find solutions to problems posed by the pandemic

Curated on Posted on by Stefaan Verhulst

Paper by Ana Colovic, Annalisa Caloffi, and Federica Rossi: “We discuss how public administrations have used crowdsourcing to find solutions to specific problems posed by the COVID-19 pandemic, and to what extent crowdsourcing has been instrumental in promoting open innovation and service co-creation. We propose a conceptual typology of crowdsourcing challenges based on the degree of their openness and collaboration with the crowd that they establish. Using empirical evidence collected in 2020 and 2021, we examine the extent to which these types have been used in practice. We discuss each type of crowdsourcing challenge identified and draw implications for public policy…(More)”.

The GDPR effect: How data privacy regulation shaped firm performance globally

Curated on Posted on by Stefaan Verhulst

Paper by Carl Benedikt Frey and Giorgio Presidente:  “…To measure companies’ exposure to GDPR, we exploit international input-output tables and compute the shares of output sold to EU markets for each country and 2-digit industry. We then construct a shift-share instrument interacting this share with a dummy variable taking the value one from 2018 onwards.

Based on this approach, we find both channels discussed above to be quantitatively important, though the cost channel consistently dominates. On average, across our full sample, companies targeting EU markets saw an 8% reduction in profits and a relatively modest 2% decrease in sales (Figure 1). This suggests that earlier studies, which have focused on online outcomes or proxies of sales, provide an incomplete picture since companies have primarily been adversely affected through surging compliance costs. 

While systematic data on firms’ IT purchases are hard to come by, we can explore how companies developing digital technologies have responded to GDPR. Indeed, taking a closer look at some recent patent documents, we note that these include applications for technologies like a “system and method for providing general data protection regulation (GDPR) compliant hashing in blockchain ledgers”, which guarantees a user’s right to be forgotten. Another example is a ‘Data Consent Manager’, a computer-implemented method for managing consent for sharing data….

While the results reported above show that GDPR has reduced firm performance on average, they do not reveal how different types of firms have been affected. As is well-known, large companies have more technical and financial resources to comply with regulations (Brill 2011), invest more in lobbying (Bombardini 2008), and might be better placed to obtain consent for personal data processing from individual consumers (Goldfarb and Tucker 2011). For example, Facebook has reportedly hired some 1,000 engineers, managers, and lawyers globally in response to the new regulation. It also doubled its EU lobbying budget in 2017 on the previous year, when GDPR was announced. Indeed, according to LobbyFacts.eu, Google, Facebook and Apple now rank among the five biggest corporate spenders on lobbying in the EU, with annual budgets in excess of €3.5 million.

While these are significant costs that might reduce profits, the impact of the GDPR on the fortunes of big tech is ambiguous. As The New York Times writes, “Whether Europe’s tough approach is actually crimping the global tech giants is unclear… Amazon, Apple, Google and Facebook have continued to grow and add customers”. Indeed, by being better able to cope with the burdens of the regulation, these companies may have increased their market share at the expense of smaller companies (Johnson et al. 2020, Peukert et al. 2020). …(More)”.

Privacy As/And Civil Rights

Curated on Posted on by Stefaan Verhulst

Paper by Tiffany C. Li: “Decades have passed since the modern American civil rights movement began, but the fight for equality is far from over. Systemic racism, sexism, and discrimination against many marginalized groups is still rampant in our society. Tensions rose to a fever pitch in 2020, with a summer of Black Lives Matters protests, sparked by the police killing of George Floyd, leading in to an attempted armed insurrection and attack on the U.S. Capitol on January 6, 2021. Asian-Americans faced rising rates of racism and hate crimes , spurred in part by inflammatory statements from the then-sitting President of the United States. Members of the LGBT community faced attacks on their civil rights during the Trump administration, including a rolling back of protections awarded to transgender individuals.

At the same time, the world faced a deadly pandemic that exposed the inequalities tearing the fabric of our society. The battle for civil rights is clearly not over, and the nation and the world have faced setbacks in the fight for equality, brought out by the pandemic, political pressures, and other factors. Meanwhile, the role of technology is also changing, with new technologies like facial recognition, artificial intelligence, and connected devices, offering new threats and perhaps new hope for civil rights. To understand privacy at our current point in time, we must consider the role of privacy in civil rights—and even, as scholars like Alvaro Bedoya have suggested, privacy itself as a civil right.

This Article is an attempt to expand upon the work of privacy and civil rights scholars in conceptualizing privacy as a civil right and situating this concept within the broader field of privacy studies. This Article builds on the work of scholars who have analyzed critical dimensions of privacy and privacy law, and who have advocated for changes in privacy law that can move our society forward to protect privacy and equality for all…(More)”.

Letters and cards telling people about local police reduce crime

Curated on Posted on by Stefaan Verhulst

Article by Elicia John & Shawn D. Bushway: “Community policing is often held up as an instrumental part of reforms to make policing less harmful, particularly in low-income communities that have high rates of violence. But building collaborative relationships between communities and police is hard. Writing in Nature, Shah and LaForest describe a large field experiment revealing that giving residents cards and letters with basic information about local police officers can prevent crime. Combining these results with those from Internet-based experiments, the authors attribute the observed reduction in crime to perceived ‘information symmetry’.

Known strangers are individuals whom we’ve never met but still know something about, such as celebrities. We tend to assume, erroneously, that known strangers know as much about us as we do about them. This tendency to see information symmetry when there is none is referred to as a social heuristic — a shortcut in our mental processing…

Collaborating with the New York Police Department, the authors sent letters and cards to residents of 39 public-housing developments, providing information about the developments’ local community police officers, called neighbourhood coordination officers. These flyers included personal details, such as the officers’ favourite food, sports team or superhero. Thirty control developments had neighbourhood coordination officers, but did not receive flyers….

This field experiment provided convincing evidence that a simple intervention can reduce crime. Indeed, in the three months after the intervention, the researchers observed a 5–7% drop in crime in the developments that received the information compared with neighbourhoods that did not. This level of reduction is similar to that of more-aggressive policing policies4. The drop in crime lessened after three months, which the authors suggest is due to the light touch and limited duration of the intervention. Interventions designed to keep officers’ information at the top of residents’ minds (such as flyers sent over a longer period at a greater frequency) might therefore result in longer-term effects.

The authors attribute the reduction in crime to a heightened perception among residents receiving flyers that the officer would find out if they committed a crime. The possibilities of such findings are potentially exciting, because the work implies that a police officer who is perceived as a real person can prevent crime without tactics such as the New York City police department’s ‘stop, question and frisk’ policy, which tended to create animosity between community members and the police….(More)”

Where Do My Tax Dollars Go? Tax Morale Effects of Perceived Government Spending

Curated on Posted on by Stefaan Verhulst

Paper by Matias Giaccobasso, Brad C. Nathan, Ricardo Perez-Truglia & Alejandro Zentner: “Do perceptions about how the government spends tax dollars affect the willingness to pay taxes? We designed a field experiment to test this hypothesis in a natural, high-stakes context and via revealed preferences. We measure perceptions about the share of property tax revenues that fund public schools and the share of property taxes that are redistributed to disadvantaged districts. We find that even though information on where tax dollars go is publicly available and easily accessible, taxpayers still have significant misperceptions. We use an information-provision experiment to induce exogenous shocks to these perceptions. Using administrative data on tax appeals, we measure the causal effect of perceived government spending on the willingness to pay taxes. We find that some perceptions about government spending have a significant effect on the probability of filing a tax appeal and in a manner that is consistent with the classical theory of benefit-based taxation. We discuss implications for researchers and policy makers…(More)”.

On the Dynamics of Human Behavior: The Past, Present, and Future of Culture, Conflict, and Cooperation

Curated on Posted on by Stefaan Verhulst

Paper by Nathan Nunn: “I provide a theoretically-guided discussion of the dynamics of human behavior, focusing on the importance of culture (socially-learned information) and tradition (transmission of culture across generations). Decision-making that relies on tradition can be an effective strategy and arises in equilibrium. While dynamically optimal, it generates static `mismatch.’ When the world changes, since traits evolve slowly, they may not be beneficial in their new environment. I discuss how mismatch helps explain the world around us, presents special challenges and opportunities for policy, and provides important lessons for our future as a human species…(More)”.

A participatory approach for empowering community engagement in data governance: The Monash Net Zero Precinct

Curated on Posted on by Stefaan Verhulst

Paper by Darren Sharp et al: “Data governance is an emerging field of study concerned with how a range of actors can successfully manage data assets according to rules of engagement, decision rights, and accountabilities. Urban studies scholarship has continued to demonstrate and criticize lack of community engagement in smart city development and urban data governance projects, including in local sustainability initiatives. However, few move beyond critique to unpack in more detail what community engagement should look like. To overcome this gap, we develop and test a participatory methodology to identify approaches to empowering community engagement in data governance in the context of the Monash Net Zero Precinct in Melbourne, Australia. Our approach uses design for social innovation to enable a small group of “precinct citizens” to co-design prototypes and multicriteria mapping as a participatory appraisal method to open up and reveal a diversity of perspectives and uncertainties on data governance approaches. The findings reveal the importance of creating deliberative spaces for pluralising community engagement in data governance that consider the diverse values and interests of precinct citizens. This research points toward new ways to conceptualize and design enabling processes of community engagement in data governance and reflects on implementation strategies attuned to the politics of participation to support the embedding of these innovations within specific socio-institutional contexts….(More)”.

Privacy and/or Trade

Curated on Posted on by Stefaan Verhulst

Paper by Anupam Chander and Paul M. Schwartz: “International privacy and trade law developed together, but now are engaged in significant conflict. Current efforts to reconcile the two are likely to fail, and the result for globalization favors the largest international companies able to navigate the regulatory thicket. In a landmark finding, this Article shows that more than sixty countries outside the European Union are now evaluating whether foreign countries have privacy laws that are adequate to receive personal data. This core test for deciding on the permissibility of global data exchanges is currently applied in a nonuniform fashion with ominous results for the data flows that power trade today.

The promise of a global internet, with access for all, including companies from the Global South, is increasingly remote. This Article uncovers the forgotten and fateful history of the international regulation of privacy and trade that led to our current crisis and evaluates possible solutions to the current conflict. It proposes a Global Agreement on Privacy enforced within the trade order, but with external data privacy experts developing the treaty’s substantive norms….(More)”.