This article summarizes and draws connections among diverse streams of theoretical empirical research on the economics privacy. We focus economic value consequences protecting disclosing personal information, consumers' understanding decisions regarding trade-offs associated with privacy sharing data. highlight how analysis evolved over time, as advancements in information technology raised increasingly nuanced complex issues. find three themes that connect insights from literature. First,...

When a firm can recognize its previous customers, it may use information about their past purchases to price discriminate. We study model with monopolist and continuum of heterogeneous consumers, where consumers have the ability maintain anonymity avoid being identified as possibly at cost. freely anonymity, they all individually choose do so, which results in highest profit for monopolist. Increasing cost benefit but only up point, after effect is reversed. show that if or an independent...

Jia et al. study the effects of General Data Protection Regulation on technology venture investment in European Union.

This article summarizes and draws connections among diverse streams of theoretical empirical research on the economics privacy. We focus economic value consequences protecting disclosing personal information, consumers' understanding decisions regarding trade-offs associated with privacy sharing data. highlight how analysis evolved over time, as advancements in information technology raised increasingly nuanced complex issues protection information. find three themes that connect insights...

Abstract We examine the extent to which network effects on a digital platform are geographically local. Focusing fantasy sports market, we find that size of county's existing user base significantly impacts number new adopters in county, while nearby counties does not. also evidence heterogenous across income levels. Guided by these results, demonstrate initial distribution users can influence growth over time, and draw implications for optimal seeding strategies.

We study a model in which firms offer financial products to individuals, post prices for their products, and screen consumers who apply purchase them. Any information obtained the screening process may be traded another firm selling related products. show that firms' ability sell consumer can lead lower prices, higher intensities, increased social welfare. By exploiting variations adoption of local financial‐privacy ordinances five California Bay Area counties, we are able provide simple...

Short-term rentals, private residences where tourists stay, have become ubiquitous over the past decade. Many communities are divided trade-offs between a property owner's rights and nuisance problems created by transient populations in residential neighborhoods. This paper empirically examines effects of regulation restricting short-term rentals on sales prices, using unique data set policy experiment from Anna Maria Island, Florida. We show that nonresident ownership properties island...

Abstract We examine the influence of firms’ ability to employ individualized pricing on welfare consequences horizontal mergers. In a two‐to‐one merger, merger reduces consumer surplus more when firms can price discriminate based individual preferences compared they cannot. However, opposite holds true in three‐to‐two which reduction is substantially lower with than uniform pricing. Further, requires an even smaller marginal cost justify upstream data provider make exclusive offers for its...

How do price commitments impact the amount of information firms acquire about potential customers? We examine this question in context a competitive market where search for that may disqualify applicants. Contracts are incomplete because acquired cannot be observed. Despite competition, we find too much equilibrium. If discrimination is prohibited, members high-risk groups suffer disproportionately high rejection rates. rejected applicants remain market, resulting adverse selection can...

We examine how investors' tendency to invest locally interacts with Europe's General Data Protection Regulation (GDPR). Using five-year investment data, we demonstrate that GDPR differentially affects investors as a function of their proximity ventures. show GDPR's rollout in May 2018 has negative effects on EU venture investment, and the are larger when ventures lead not same state or union. The relationship manifests number deals amount invested per deal, is pronounced for newer,...

Using a unique dataset on Software Development Kits (SDKs), we study SDK usage in Android mobile apps before and after the European Union implemented General Data Protection Regulation (GDPR) May 2018. In raw data, both US five major countries (EU5) increased GDPR, despite GDPR's heuristic concerning data minimization. However, relative to US-only apps, find that EU5-only reduce number of non-Google SDKs by 1.3% rollout. This small marginally significant result is driven non-top-ranked...