Affiliation:
1. Economics Department, University of Essex (email: )
2. MIT Sloan School of Management (email: )
Abstract
We study data linkages among heterogeneous firms and examine how they shape the outcome of privacy regulation. A single consumer interacts sequentially with two firms: one firm collects data on consumer behavior, and the other firm leverages the data to set a quality level and a price. Privacy-conscious consumers distort their purchases from a data-collecting firm to manipulate the data-using firm's beliefs. We identify conditions under which data linkages increase total firm profits. Therefore, if firms can trade consumer data efficiently, our setting provides a rationale for the existence of data markets even with privacy-conscious consumers.
Publisher
American Economic Association
Reference14 articles.
1. The Economics of Privacy
2. Conditioning Prices on Purchase History
3. Argenziano, Rossella, and Alessandro Bonatti. 2021. "Data Linkages and Privacy Regulation." Unpublished.
4. Ball, Ian. 2022. "Scoring Strategic Agents." Unpublished.
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献