The digital economy’s functioning hinges upon the close collaboration of various core elements. Data, as a pivotal production factor, derives its value not in isolation but rather from its intricate connection to physical media, like data processors and storage devices. This paper introduces a comprehensive equilibrium model that unifies critical components of the digital economy, including computing power, storage, data, and algorithms, within an integrated analytical framework, forming a more general theory. In the general digital economic model, data accumulation is restricted by data storage capability, while the efficiency of data utilization depends on rival computing power. When data is shared and utilized non-rivalry across all production and innovation sectors, the volume of data generated, total computing power, and distribution of computing resources mutually influence each other, culminating in a market competition equilibrium. However, this equilibrium may give rise to potential issues, such as excessive investment in computing power, unequal distribution of computing resources, and insufficient innovation during market competition. Moreover, under different parameter settings, the market competitive equilibrium may experience inadequate data sharing or data misuse. In conclusion, this paper extends the model to include algorithm innovation and dynamic accumulation of storage and computing power. This comprehensive analysis provides valuable insights into the intricate dynamics of the digital economy, facilitating a deeper understanding of its core mechanisms and implications for policy making and industry practices
