Argenziano, Rosa and Bonatti, Alessandro (2025) Data Linkages and Privacy Regulation. American Economic Journal: Microeconomics. (In Press)
Argenziano, Rosa and Bonatti, Alessandro (2025) Data Linkages and Privacy Regulation. American Economic Journal: Microeconomics. (In Press)
Argenziano, Rosa and Bonatti, Alessandro (2025) Data Linkages and Privacy Regulation. American Economic Journal: Microeconomics. (In Press)
Abstract
We assess the efficacy of privacy regulation when consumers are privacy conscious. We develop a model of data linkages where a 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. A data linkage benefits the consumer in equilibrium when the recipient firm is sufficiently similar to the collecting firm. We endogenize linkage formation under several existing privacy regulations. Voluntary con- sent requirements benefit consumers in equilibrium but blanket bans on discriminatory price and quality offers harm them.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | consumer privacy; privacy regulation; consumer consent; data linkages; data rights; price discrimination; transparency; ratchet effect |
| 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: | 14 Nov 2025 13:00 |
| Last Modified: | 14 Nov 2025 14:55 |
| URI: | http://repository.essex.ac.uk/id/eprint/41981 |
Available files
Filename: Argenziano Bonatti Linkages.pdf
Embargo Date: 1 January 2100