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Some economic consequences of the GDPR

Author

Listed:
  • Darcy W E Allen

    (RMIT University, RMIT Blockchain Innovation Hub)

  • Alastair Berg

    (RMIT University, RMIT Blockchain Innovation Hub)

  • Chris Berg

    (RMIT University, RMIT Blockchain Innovation Hub)

  • Brendan Markey-Towler

    (RMIT University, RMIT Blockchain Innovation Hub)

  • Jason Potts

    (RMIT University, RMIT Blockchain Innovation Hub)

Abstract

The EU General Data Protection Regulation (GDPR) is a wide ranging personal data protection regime of greater magnitude than any similar regulation previously in the EU, or elsewhere. In this paper, we outline how the GDPR impacts the value of data held by data collectors before proposing some potential unintended consequences. Given the distortions of the GDPR on data value, we propose that new complex financial products—essentially new data insurance markets—will emerge, potentially leading to further systematic risks. Finally we examine how market-driven solutions to the data property rights problems the GDPR seeks to solve—particularly using blockchain technology as economic infrastructure for data rights—might be less distortionary.

Suggested Citation

  • Darcy W E Allen & Alastair Berg & Chris Berg & Brendan Markey-Towler & Jason Potts, 2019. "Some economic consequences of the GDPR," Economics Bulletin, AccessEcon, vol. 39(2), pages 785-797.
    • Handle: RePEc:ebl:ecbull:eb-18-00834
    as

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    References listed on IDEAS

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    Cited by:

    1. Sharma, Gagan Deep & Tiwari, Aviral Kumar & Chopra, Ritika & Dev, Dhairya, 2024. "Past, present, and future of block-chain in finance," Journal of Business Research, Elsevier, vol. 177(C).

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    More about this item

    Keywords

    Data Markets; Information Economics; Regulation; Financial Innovation; Blockchain;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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