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The perils of privacy regulation

Author

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  • Caleb S. Fuller

    (George Mason University)

Abstract

Advocates of digital privacy law believe it is necessary to correct failures in the market for digital privacy. Though legislators allegedly craft digital privacy regulation to protect consumers, some advocates have understated the dangers that digital privacy law may engender. This paper provides evidence for Kirzner’s “perils of regulation” in the digital privacy arena. The regulatory process fails to simulate the market process, stifles entrepreneurial discovery, and creates opportunities for superfluous discovery. My research suggests that policy-makers should consider a more holistic accounting of the costs before imposing additional digital privacy regulation.

Suggested Citation

  • Caleb S. Fuller, 2017. "The perils of privacy regulation," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(2), pages 193-214, June.
    • Handle: RePEc:kap:revaec:v:30:y:2017:i:2:d:10.1007_s11138-016-0345-0
    DOI: 10.1007/s11138-016-0345-0
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    References listed on IDEAS

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    Cited by:

    1. Caleb S. Fuller, 2018. "Privacy law as price control," European Journal of Law and Economics, Springer, vol. 45(2), pages 225-250, April.
    2. Yevgeniy Popov & Konstantin Semyachkov, 2018. "Problems of Economic Security for Digital Society in the Context of Globalization," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1088-1101.

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    More about this item

    Keywords

    Economics of digital privacy; Regulation; Market process;
    All these keywords.

    JEL classification:

    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian

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