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Reciprocal privacy invasion and taxation of online map services

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  • 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
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    References listed on IDEAS

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    Keywords

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    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

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