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Privacy and Innovation

In: Innovation Policy and the Economy, Volume 12

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  • Avi Goldfarb
  • Catherine Tucker

Abstract

Executive SummaryInformation and communication technologies now enable firms to collect detailed and potentially intrusive data about their customers both easily and cheaply. Privacy concerns are thus no longer limited to government surveillance and public figures’ private lives. The empirical literature shows that privacy regulation may affect the extent and direction of data-based innovation. We also show that the impacts of privacy regulation can be extremely heterogeneous. We therefore argue that digitization has made privacy policy a part of innovation policy.

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Bibliographic Info

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This chapter was published in:

  • Josh Lerner & Scott Stern, 2012. "Innovation Policy and the Economy, Volume 12," NBER Books, National Bureau of Economic Research, Inc, number lern11-2, October.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 12453.

    Handle: RePEc:nbr:nberch:12453

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Catherine Tucker & Amalia Miller, 2007. "Privacy Protection and Technology Diffusion: The Case of Electronic Medical Records," Working Papers, NET Institute 07-16, NET Institute, revised Sep 2007.
    2. Randall Lewis & Justin M. Rao & David H. Reiley, 2014. "Measuring the Effects of Advertising: The Digital Frontier," NBER Chapters, in: Economics of Digitization National Bureau of Economic Research, Inc.
    3. Amalia R. Miller & Catherine E. Tucker, 2011. "Encryption and the loss of patient data," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(3), pages 534-556, 06.
    4. David S. Evans, 2009. "The Online Advertising Industry: Economics, Evolution, and Privacy," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 23(3), pages 37-60, Summer.
    5. Avi Goldfarb & Catherine E. Tucker, 2011. "Privacy Regulation and Online Advertising," Management Science, INFORMS, INFORMS, vol. 57(1), pages 57-71, January.
    6. Alessandro Acquisti & Hal R. Varian, 2005. "Conditioning Prices on Purchase History," Marketing Science, INFORMS, INFORMS, vol. 24(3), pages 367-381, May.
    7. Benjamin Hermalin & Michael Katz, 2006. "Privacy, property rights and efficiency: The economics of privacy as secrecy," Quantitative Marketing and Economics, Springer, Springer, vol. 4(3), pages 209-239, September.
    8. Avi Goldfarb & Catherine Tucker, 2011. "Online Display Advertising: Targeting and Obtrusiveness," Marketing Science, INFORMS, INFORMS, vol. 30(3), pages 389-404, 05-06.
    9. Catherine Tucker, 2010. "Social Networks, Personalized Advertising, and Privacy Controls," Working Papers, NET Institute 10-07, NET Institute.
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    Cited by:
    1. Avi Goldfarb, 2014. "What is Different About Online Advertising?," Review of Industrial Organization, Springer, Springer, vol. 44(2), pages 115-129, March.
    2. Yi Qian & Hui Xie, 2013. "Drive More Effective Data-Based Innovations: Enhancing the Utility of Secure Databases," NBER Working Papers 19586, National Bureau of Economic Research, Inc.

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