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Trusting privacy in the cloud

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  • Prüfer, Jens

Abstract

Cloud computing technologies can increase innovation and economic growth considerably. Because of privacy concerns, however, many users underutilize cloud technologies. This paper designs an institution attenuating the problem: a two-layered certification scheme built around a private, nonprofit organization called cloud association. This association is governed by representatives of both users and cloud service providers and sources auditing and certification of providers out to independent for-profit certifiers. It is shown how this institution incentivizes providers to produce high data security, and users with strong privacy preferences to trust them and pay a premium for their services.

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  • Prüfer, Jens, 2018. "Trusting privacy in the cloud," Information Economics and Policy, Elsevier, vol. 45(C), pages 52-67.
    • Handle: RePEc:eee:iepoli:v:45:y:2018:i:c:p:52-67
    DOI: 10.1016/j.infoecopol.2018.10.003
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    Cited by:

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    More about this item

    Keywords

    Trust; Private ordering; Associations; Certification; Privacy;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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