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The economics of advertising and privacy

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  • Tucker, Catherine E.

Abstract

One of the new realities of advertising is that personal information can be used to ensure that advertising is only shown and designed for a select group of consumers who stand to gain most from this information. However, to gather the data used for targeting requires some degree of privacy intrusion by advertisers. This sets up a tradeoff between the informativeness of advertising and the degree of privacy intrusion. This paper summarizes recent empirical research that illuminates this tradeoff.

Suggested Citation

  • Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
    • Handle: RePEc:eee:indorg:v:30:y:2012:i:3:p:326-329
    DOI: 10.1016/j.ijindorg.2011.11.004
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    References listed on IDEAS

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    More about this item

    Keywords

    Privacy; Online advertising; Targeting;
    All these keywords.

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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