Link to Paper
Abstract:
Prompted by recent open data policies in the European Union and the United States, administrations increasingly publish their public sector information. Opening government data for broad commercial re-use is thereby motivated by three primary policy goals: innovation, competition and societal benefits. However, so far, a comprehensive evaluation of how open government data affects re-users' incentives and ensuing market outcomes in the digital economy is missing. Therefore, we conduct a conceptual analysis of the economic effects of open government data and characterize conditions under which primary policy goals can be achieved. Our findings highlight a basic trade-off between innovation and competition goals and demonstrate that the effectiveness of open government data crucially depends on the information contained in a data set. By distinguishing different information domains, we derive insights for policy makers on which open government data sets can promote a desired policy goal and how to balance economic trade-offs.
