On legal bubbles: some thoughts on legal shockwaves at the core of the digital economy

Abstract

For two decades, economic agents have been investing in the personal data-driven industry on the assumption that courts, the keepers of the legal systems, would have backed their claims, turning their technological control of personal data into legally protected property rights. Courts' backing has proved only temporary as they are now revising early solutions by constraining collection, use, and trade of personal data to protect the hierarchically superior rights. The theory of ‘legal bubbles’ rationalizes the economics underlying the legal shockwaves affecting the personal data-driven economy. ‘Legal bubbles’ tend to arise when economic agents invest in the economic exploitation of a new resource in a context of uncertainty and ignorance about the legal implications of innovative activities. These legal foundations may eventually turn out to be unstable as a result of courts' ex-post attempt to re-adapt them to the previously ignored implications of unconstrained commodification, with disruptive economic consequences.

Healthcare Digitalisation and the Changing Nature of Work and Society

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Mechanisms and Paths for Constructing the Organic Interface between Digital Economy and Chinese-Style Modernization Based on Cognitive Mapping

“…However, at the same time, the emerging digital economy is prone to social inequality, depicting a state of the field in which social workers are involved [17]. Giraudo, M explored the ways in which personal data drive economic activities in the context of the digital economy based on the theory of "legal bubbles" [18]. Economides, N. S examines the support of digital platforms such as Google and Facebook for the development of the digital economy and explores different dimensions around the collection of personal information [19].…”

A numerus clausus rationale for the privity of contract: the protective function

“…11 More generally in modern economies, how markets are born, function and evolve is shaped by the law (Deakin et al, 2017), and digital markets make no exception. The fact that the legal foundations of markets can create welcome outcomes together with perverse incentives at the same time is well documented, both outside and inside the digital sector (Chander, 2014;Giraudo, 2021;Pistor, 2019). We claim that the current legal framework of digital objects could be adjusted to correct some of its shortcomings.…”