Data Marts (2)

Nevertheless, there are still many reasons to explain why it is costly for transferors to hand over data. When the transferor is the subject of the data, he/she may worry that the data will be used to expose him/herself to: legal liability (e.g. identity theft), discrimination, unnecessary solicitation, social condemnation, or the discomfort of being monitored. When the transferor is a user, he/she may fear that disclosure will cause him to lose his/her competitive advantage.

Sometimes, a mutually beneficial data transfer is possible only when the transferee complies with certain restrictions on the use or further transfer of the data, or implements security measures that can reduce the risk of unintentional transmission. Some of these restrictions and security measures are designed to reduce the cost of data collection imposed on the transferor who is as a consumer. Other restrictions increase the transaction returns by allowing the transferor to maintain its competitiveness relative to the data mart and benefit from it. These restrictions prevent the transferee from reselling the data in competition with the transferor. In addition, the combination of use restrictions and transfer restrictions can help the transferor charge different prices to different users—that is, the so-called price discrimination. Finally, use restrictions may also help avoid expensive regulation.