Zhongli Wang - Heterogeneous Consumers and the Data Value Chain: An Agent-based Approach
Presenting author: Zhongli Wang (Bielefeld University; UCSC Milan)
Authors: Zhongli Wang
Session: B01C - Agent-Based Modelling - Tuesday 9:00-10:30 - Senate Hall
Slides: PDF
The development of Information and Communications Technologies (ICTs) and the digitalization trend supported the rise of software applications. The properties, for instance, dependency on information systems, the intangibility of the products and the importance of license, make the software applications unique compared to traditional goods. It is clear that the prices and the accessibility of these applications vary on the global market because of different local data restrictions, yet how does the data restriction level affect the spatial distribution of economic activities across periods? To understand the logic behind the influence of the data restriction level on the software market, we conduct an agent-based approach containing firms (the software owners and developers), consumers, governments and the global maximizer. Our model comprises the business activities between the software owners and the developers, the product selection process of heterogeneous consumers, the strategies of the software owners, and the price dynamics across periods. The results derived from our computational experiments show that the strength of the data restrictions could affect the price formation process. We suggest that the governments of different regions should enhance cooperation and try to reduce the data regulation level from either side for the well-being of the consumers and local firms.