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Data portability, data disclosure and data-induced switching costs: Some unintended consequences of the General Data Protection Regulation

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  • Krämer, Jan
  • Stüdlein, Nadine

Abstract

We develop a simple game-theoretic model to demonstrate that with the new General Data Protection Regulation’s (GDPR) right to port data between content providers (CPs), (i) the incumbent CP has less incentives to preserve users’ privacy, (ii) a new entrant CP will charge higher prices for its service, and (iii) customers of the new CP are worse off, while customers of the incumbent CP are better off.

Suggested Citation

  • Krämer, Jan & Stüdlein, Nadine, 2019. "Data portability, data disclosure and data-induced switching costs: Some unintended consequences of the General Data Protection Regulation," Economics Letters, Elsevier, vol. 181(C), pages 99-103.
    • Handle: RePEc:eee:ecolet:v:181:y:2019:i:c:p:99-103
    DOI: 10.1016/j.econlet.2019.05.015
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    References listed on IDEAS

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    1. Klemperer, Paul D, 1988. "Welfare Effects of Entry into Markets with Switching Costs," Journal of Industrial Economics, Wiley Blackwell, vol. 37(2), pages 159-165, December.
    2. Michael Wohlfarth, 2019. "Data Portability on the Internet," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(5), pages 551-574, October.
    3. Ramon Casadesus-Masanell & Andres Hervas-Drane, 2015. "Competing with Privacy," Management Science, INFORMS, vol. 61(1), pages 229-246, January.
    4. Lefouili, Yassine & Toh, Ying Lei, 2017. "Privacy and Quality," IDEI Working Papers 867, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jan 2018.
    5. Paul Klemperer, 1987. "The Competitiveness of Markets with Switching Costs," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 138-150, Spring.
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    Keywords

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    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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