Argenziano, Rossella and Bonatti, Alessandro (2023) Data Markets with Privacy-Conscious Consumers. AEA Papers and Proceedings, 113. pp. 191-196. DOI https://doi.org/10.1257/pandp.20231083 (In Press)
Argenziano, Rossella and Bonatti, Alessandro (2023) Data Markets with Privacy-Conscious Consumers. AEA Papers and Proceedings, 113. pp. 191-196. DOI https://doi.org/10.1257/pandp.20231083 (In Press)
Argenziano, Rossella and Bonatti, Alessandro (2023) Data Markets with Privacy-Conscious Consumers. AEA Papers and Proceedings, 113. pp. 191-196. DOI https://doi.org/10.1257/pandp.20231083 (In Press)
Abstract
<jats:p> 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. </jats:p>
Item Type: | Article |
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Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 17 Jan 2023 14:59 |
Last Modified: | 07 Aug 2024 18:37 |
URI: | http://repository.essex.ac.uk/id/eprint/34627 |
Available files
Filename: Argenziano Bonatti AEA PP.pdf