IDEAS home Printed from https://ideas.repec.org/a/liu/liucej/v22y2025i2p265-286.html

Reciprocal privacy invasion and taxation of online map services

Author

Listed:
  • Koji Domon, Michael Y. Yuan, Zhengyi Zhang

Abstract

This paper considers privacy invasion, such as Street View, resulting from map services on the Internet. Reciprocal privacy invasion can develop into a Prisoners’ Dilemma. A portal site remedies such a dilemma by supplying personal information. However, under excessive supply, the problem worsens with negative utility. Whether such a situation develops or not is dependent on the cost of using a service and the coverage of information. We consider two types of taxation, on personal information and advertisements, in order to bring about a social optimum. Furthermore, we obtain a condition in which taxation brings about large tax revenues to be redistributed to privacy-encroached agents.

Suggested Citation

  • Koji Domon, Michael Y. Yuan, Zhengyi Zhang, 2025. "Reciprocal privacy invasion and taxation of online map services," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 22(2), pages 265-286, December.
    • Handle: RePEc:liu:liucej:v:22:y:2025:i:2:p:265-286
    as

    Download full text from publisher

    File URL: https://ejce.liuc.it/articles/ejce043.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Avi Goldfarb & Verina F. Que, 2023. "The Economics of Digital Privacy," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 267-286, September.
    2. Benjamin Hermalin & Michael Katz, 2006. "Privacy, property rights and efficiency: The economics of privacy as secrecy," Quantitative Marketing and Economics (QME), Springer, vol. 4(3), pages 209-239, September.
    3. Liu, Qihong & Serfes, Konstantinos, 2006. "Customer information sharing among rival firms," European Economic Review, Elsevier, vol. 50(6), pages 1571-1600, August.
    4. Stigler, George J., 1980. "An Introduction to Privacy in Economics and Politics," Working Papers 10, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    5. Brito, Dagobert L. & Sheshinski, Eytan & Intriligator, Michael D., 1991. "Externalities and compulsary vaccinations," Journal of Public Economics, Elsevier, vol. 45(1), pages 69-90, June.
    6. David S. Evans, 2009. "The Online Advertising Industry: Economics, Evolution, and Privacy," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 37-60, Summer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lagerlöf, Johan N.M., 2023. "Surfing incognito: Welfare effects of anonymous shopping," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    2. Avi Goldfarb, 2014. "What is Different About Online Advertising?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(2), pages 115-129, March.
    3. Blind, Knut & Niebel, Crispin Miles & Rammer, Christian, 2022. "The impact of the EU General Data Protection Regulation on innovation in firms," ZEW Discussion Papers 22-047, ZEW - Leibniz Centre for European Economic Research.
    4. Paul Heidhues & Mats Köster & Botond Kőszegi, 2023. "Steering Fallible Consumers," The Economic Journal, Royal Economic Society, vol. 133(652), pages 1430-1465.
    5. Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
    6. Avi Goldfarb & Catherine E. Tucker, 2011. "Privacy Regulation and Online Advertising," Management Science, INFORMS, vol. 57(1), pages 57-71, January.
    7. Fabrice Rochelandet & Silvio H. T. Tai, 2016. "Do privacy laws affect the location decisions of internet firms? Evidence for privacy havens," European Journal of Law and Economics, Springer, vol. 42(2), pages 339-368, October.
    8. Flavio Pino, 2022. "The microeconomics of data – a survey," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(3), pages 635-665, September.
    9. Avi Goldfarb & Catherine Tucker, 2012. "Privacy and Innovation," Innovation Policy and the Economy, University of Chicago Press, vol. 12(1), pages 65-90.
    10. repec:nbr:nberch:14785 is not listed on IDEAS
    11. Luc Wathieu & Allan Friedman, 2009. "An empirical approach to understanding privacy concerns," ESMT Research Working Papers ESMT-09-001, ESMT European School of Management and Technology, revised 14 Jan 2009.
    12. Bodo Herzog, 2018. "Valuation of Digital Platforms: Experimental Evidence for Google and Facebook," IJFS, MDPI, vol. 6(4), pages 1-13, October.
    13. Andrea Galeotti & Brian W. Rogers, 2013. "Strategic Immunization and Group Structure," American Economic Journal: Microeconomics, American Economic Association, vol. 5(2), pages 1-32, May.
    14. Simeon Schudy & Verena Utikal, 2015. "Does imperfect data privacy stop people from collecting personal health data?," TWI Research Paper Series 98, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    15. Matthew Goodkin-Gold & Michael Kremer & Christopher M. Snyder & Heidi Williams, 2024. "Optimal Vaccine Subsidies for Epidemic Diseases," The Review of Economics and Statistics, MIT Press, vol. 106(4), pages 895-909, July.
    16. A. Daly & A. Scardamaglia, 2017. "Profiling the Australian Google Consumer: Implications of Search Engine Practices for Consumer Law and Policy," Journal of Consumer Policy, Springer, vol. 40(3), pages 299-320, September.
    17. Jentzsch, Nicola & Sapi, Geza & Suleymanova, Irina, 2013. "Targeted pricing and customer data sharing among rivals," International Journal of Industrial Organization, Elsevier, vol. 31(2), pages 131-144.
    18. Railey, Ashley F. & Marsh, Thomas L., "undated". "Diagnostic Testing and Vaccine Matching: FMD in Tanzania," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258386, Agricultural and Applied Economics Association.
    19. Proano, Ruben A. & Jacobson, Sheldon H. & Zhang, Wenbo, 2012. "Making combination vaccines more accessible to low-income countries: The antigen bundle pricing problem," Omega, Elsevier, vol. 40(1), pages 53-64, January.
    20. Kim, Jin-Hyuk & Newberry, Peter & Wagman, Liad, 2025. "Trading off convenience and privacy in social login," Economics Letters, Elsevier, vol. 254(C).
    21. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:liu:liucej:v:22:y:2025:i:2:p:265-286. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Laura Ballestra (email available below). General contact details of provider: https://edirc.repec.org/data/liuccit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.