Data Policy and Choices in Platforms

Data policies in platform environments drive choices made by firms and consumers. The distinctive feature of platform businesses is how the combination of network effects with data analytics drives choices made by platforms themselves, as well as by their complementors and consumers. We explore how data policies drive technological, organizational and economic decisions made by platforms, complementors and consumers. We conclude by observing a need for education on digital and data interactions. Similar to financial decision-making research, scholars and policy makers should seek to understand motives and biases that influence consumers’ digital and privacy decisions in platform environments, and design suitable education for digital citizens.