Citation :

Zenglin Xu, "The Role of Data Governance in CPS Stability from an Information Economics Perspective," International Journal of Recent Engineering Science (IJRES), vol. 13, no. 3, pp. 1-5, 2026. Crossref, https://doi.org/10.14445/23497157/IJRES-V13I3P101

Abstract

Cyber-physical systems rely on stable connections between the physical and digital worlds, but everything depends on the data linking the two. If the data isn't trustworthy, the whole system falters. Engineers have spent years studying CPS stability with control theory and computer science, but there's a blind spot: the economic incentives and information structures shaping how data flows and gets used. That's a big gap. This study tackles the problem head-on by building a framework grounded in information economics. It argues that data governance—things like quality control, security, standards, and ownership—acts as the backbone for these systems. By connecting governance mechanisms to key concepts from information economics, like reducing information asymmetry or making contracts whole, the paper shows that good governance doesn't just patch technical holes. It also lowers internal coordination costs, keeps opportunistic behavior in check, and pushes groups toward smarter decisions. In short, the paper offers a fresh perspective that blends technical and economic thinking. It lays out a way to understand and strengthen the resilience of complex, data-driven engineering systems.

Keywords

Data Governance, Cyber-Physical Systems, System Stability, Information Economics, Information Asymmetry.

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