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Secondary use of personal data: a welfare analysis

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  • Nicola Jentzsch

    (DIW Berlin)

Abstract

The European Commission is currently overhauling the most important instrument for the regulation of cross-border flows of personal data, the Data Protection Directive of 1995 (Directive 95/46/EC). Among the most tedious legal issues is the use of personal data for secondary purposes. Such use occurs if data collected for one purpose (such as credit granting) are later used for another purpose (e.g. insurance contracting). While secondary purposes are regulated under the current regime, the implementation across European countries differs. I analyze these differences and discuss cases from Germany, Ireland and The Netherlands. Moreover, using theory it is analyzed what type of regulatory regime could be welfare enhancing for consumers.

Suggested Citation

  • Nicola Jentzsch, 2017. "Secondary use of personal data: a welfare analysis," European Journal of Law and Economics, Springer, vol. 44(1), pages 165-192, August.
    • Handle: RePEc:kap:ejlwec:v:44:y:2017:i:1:d:10.1007_s10657-014-9436-1
    DOI: 10.1007/s10657-014-9436-1
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    References listed on IDEAS

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    2. Jacopo Arpetti & Antonio Iovanella, 2020. "Towards more effective consumer steering via network analysis," European Journal of Law and Economics, Springer, vol. 50(3), pages 359-380, December.

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    More about this item

    Keywords

    Privacy; Information sharing; Consumer welfare; Data protection;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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