Strategic Data Sharing between Competitors
Nikita Tsoy, Nikola Konstantinov
Abstract
Collaborative learning techniques have significantly advanced in recent years, enabling private model training across multiple organizations. Despite this opportunity, firms face a dilemma when considering data sharing with competitors -- while collaboration can improve a company's machine learning model, it may also benefit competitors and hence reduce profits. In this work, we introduce a general framework for analyzing this data-sharing trade-off. The framework consists of three components, representing the firms' production decisions, the effect of additional data on model quality, and the data-sharing negotiation process, respectively. We then study an instantiation of the framework, based on a conventional market model from economic theory, to identify key factors that affect collaboration incentives. Our findings indicate a profound impact of market conditions on the data-sharing incentives. In particular, we find that reduced competition, in terms of the similarities between the firms' products, and harder learning tasks foster collaboration.
Ask about this paper
Your agent reads all of it.
Lune indexed this paper to the last equation, along with the top-tier papers that cite it. Ask a question and the answer quotes them.
Cited by top-tier papers3
- Free-Rider and Conflict Aware Collaboration Formation for Cross-Silo Federated LearningMengmeng Chen, Xiaohu Wu, Xiaoli Tang, Tiantian He et al.NeurIPS 2024 · 18 citations
- Unravelling in Collaborative LearningAymeric Capitaine, Etienne Boursier, Antoine Scheid, Eric Moulines et al.NeurIPS 2024 · 8 citations
- FedCompetitors: Harmonious Collaboration in Federated Learning with Competing ParticipantsShanli Tan, Hao Cheng, Xiaohu Wu, Han Yu et al.AAAI 2024
Builds on3
- In Search of Lost Domain GeneralizationIshaan Gulrajani, David Lopez-PazICLR 2021 · 1,416 citations
- Model-sharing Games: Analyzing Federated Learning Under Voluntary ParticipationKate Donahue, Jon M. KleinbergAAAI 2021 · 96 citations
- One for One, or All for All: Equilibria and Optimality of Collaboration in Federated LearningAvrim Blum, Nika Haghtalab, Richard Lanas Phillips, Han ShaoICML 2021 · 62 citations
Related papers
- A Market for Accuracy: Classification Under CompetitionOhad Einav, Nir RosenfeldICML 2025
- Heterogeneous Data Game: Characterizing the Model Competition Across Multiple Data SourcesRenzhe Xu, Kang Wang, Bo LiICML 2025
- Homogeneous Algorithms Can Reduce Competition in Personalized PricingNathanael Jo, Ashia C. Wilson, Kathleen Creel, Manish RaghavanNeurIPS 2025 · 6 citations
- Improved Bayes Risk Can Yield Reduced Social Welfare Under CompetitionMeena Jagadeesan, Michael I. Jordan, Jacob Steinhardt, Nika HaghtalabNeurIPS 2023 · 20 citations
- A Profit-Maximizing Model Marketplace with Differentially Private Federated LearningPeng Sun, Xu Chen, Guocheng Liao, Jianwei HuangINFOCOM 2022 · 55 citations
