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Data portability and the collection of personal data

Author

Listed:
  • Li, Youping
  • Zhang, Jianhu

Abstract

The right to data portability allows consumers to obtain and reuse their personal data across service providers. However, its effect on market competition is not clear-cut, as it impacts the firms’ incentives to collect data. Employing a two-period game-theoretic model in which consumer data collected by one firm in the first period can be transferred to the other firm in the second period, this paper analyzes the implications of data portability on competition and welfare. We find that by eliminating the data “lock-in” effect, data portability mitigates competition during data collection, although intensifying it afterward. Perhaps counterintuitively, the firms collect more data when data is portable. Moreover, they earn higher profits, whereas consumers may well be worse off. We identify the degree of market competition as a critical determinant of the welfare implications of data portability. Specifically, low (high) levels of competition are associated with improved (worsened) overall social welfare.

Suggested Citation

  • Li, Youping & Zhang, Jianhu, 2026. "Data portability and the collection of personal data," International Journal of Industrial Organization, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:indorg:v:106:y:2026:i:c:s016771872600041x
    DOI: 10.1016/j.ijindorg.2026.103289
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    Keywords

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    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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