Jason Furman: belief

Transcript context

…Do you worry that data portability for social networks could stifle innovation? Let’s say I develop a new social network. It’s based around virtual reality. Then the regulators ask me, “Well, how do we port your data into Facebook or the incumbents?” And I say, “Well, that can’t be done.” And they say, “Well, then you don’t satisfy data portability.” And the innovation is stifled. Don’t you lock in the current way of doing things with data portability? I worry about that. That’s why you want to apply it, for example, more, or make it mandatory, for the large companies and not for Tyler Cowen’s new virtual reality company. There’s a set of costs and benefits. And I think the right way to get that mix of cost and benefits is, with the large companies, the lack of portability creates a barrier to entry. It entrenches them and reduces competition. So I’d turn the dial one way for them, and for smaller companies, I’d turn the dial the other way or not even have a dial. But doesn’t it have to be symmetric? If Facebook cannot export to the new virtual-reality social network . . . In essence, people coordinate on portability into what we have. Having any kind of certified dominant standard, even if you regulate it more heavily, in essence ensures that standard keeps on dominating the market because you have to export from Facebook into which providers, right? The government has to make a list. And that worries me.…

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