What Is the Value of Users, Anyway? How to Value the User Contribution to Digital Enterprises

20 January 2020
Vladimir Starkov and Oceana Wang

NERA Economic Consulting Director Dr. Vladimir Starkov and Senior Analyst Oceana Wang have published “What Is the Value of Users, Anyway? How to Value the User Contribution to Digital Enterprises” in the January edition of Tax Notes International. In their article, the authors consider the economics of digital businesses and set forth a conceptual framework that can be used to estimate the value of user contributions for various digital business models. The authors suggest that users’ contributions encompass two main elements: 1) users’ contributions to the network effect and 2) provision of data. The authors also describe several possible approaches for estimating the value of user contributions to digital platforms.