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The Boundary of Open Data: Implications for the Financial Market and Real Efficiency

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  • Zhigang Qiu

    (School of Finance, Renmin University of China, Beijing 100872, China; and China Financial Policy Research Center, Renmin University of China, Beijing 100872, China)

  • Ziyue Wang

    (School of Fintech, Dongbei University of Finance and Economics, Dalian 116025, China)

Abstract

We analyze the optimal boundary for open data in an economy where financial and real-sector participants access both open and private data. The distinctive features of open access and nonrivalrous usage of open data enable its dual roles as a public information source and innovation input but raise privacy concerns. Our model reveals a novel tradeoff: Although enhanced private data precision and data skills substitute for open data’s information source role, its ability to amplify innovation benefits (via improved investment efficiency) establishes a crucial complementary relationship. This induces a crowding-in effect on the optimal open data boundary under low uncertainty but a crowding-out effect under high uncertainty. The innovation role of open data further generates nonmonotonic effects, yielding complex nonlinear impacts on market and real efficiency. These findings highlight critical policy tradeoffs in balancing innovation, market efficiency, and privacy in the digital age.

Suggested Citation

  • Zhigang Qiu & Ziyue Wang, 2026. "The Boundary of Open Data: Implications for the Financial Market and Real Efficiency," Management Science, INFORMS, vol. 72(7), pages 5744-5779, July.
    • Handle: RePEc:inm:ormnsc:v:72:y:2026:i:7:p:5744-5779
    DOI: 10.1287/mnsc.2023.03679
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