Description: The White House recently released a report about the danger of big data in our lives. Its main focus was the same old topic of how it can hurt customer privacy.
Date: March 2, 2015
Federal government regulators must ask themselves: Should data that only one company owns, to the extent that it prevents others from entering the market, be considered a form of monopoly?
The search market is a perfect example of data as an unfair barrier-to-entry. Google revolutionized the search market in 1996 when it introduced a search-engine algorithm based on the concept of website importance — the famous PageRank algorithm. But search algorithms have significantly evolved since then, and today, most of the modern search engines are based on machine learning algorithms combining thousands of factors — only one of which is the PageRank of a website. Today, the most prominent factors are historical search query logs and their corresponding search result clicks. Studies show that the historical search improves search results up to 31%. In effect, today’s search engines cannot reach high-quality results without this historical user behavior. Read the rest of the Story
Questions for discussion:
1. Do monopolies in the information markets hurt competition? yes or no — explain.
2. Do you see a lot of new entries into this marketspace in the future? is that important? explain