The Economics of Privacy
Abstract
In this chapter, we review economic analyses of privacy. We begin by scrutinizing the "free market" argument against privacy regulation, and highlight why it may not work well for personal information because welfare may be non-monotone in the quantity of information, there may be excessive incentives to collect information that has no social value, and cross-market externalities may arise from the exploitation of information. We then discuss research on property rights and suggest some challenges in determining their optimal allocation. We conclude by summarizing the insights provided by recent empirical research and highlighting directions for future research in the economics of privacy.Download Info
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Paper provided by Regulation2point0 in its series Working paper with number 272.Length:
Date of creation: Jun 2005
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Handle: RePEc:reg:wpaper:272
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Keywords:Other versions of this item:
- Kai-Lung Hui & I.P.L. Png, 2005. "The Economics of Privacy," Industrial Organization 0505007, EconWPA, revised 29 Aug 2005.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Hugo Mialon & Sue Mialon, 2008. "The Economics of Search Warrants," Emory Economics 0810, Department of Economics, Emory University (Atlanta).
- Hollis, Aidan & Strauss, Jason, 2007.
"Privacy, Driving Data and Automobile Insurance: An Economic Analysis,"
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11091, University Library of Munich, Germany.
- Aidan Hollis & Jason Strauss, 2008. "Privacy, Driving Data and Automobile Insurance: An Economic Analysis," Working Papers 2008-13, Department of Economics, University of Calgary, revised 14 Feb 2008.
- Simon P. Anderson & André De Palma, 2008.
"Information Congestion,"
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- Simon P. Anderson & André de Palma, 2009. "Information congestion," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 688-709.
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