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Information Transmission Under Privacy Concerns

Author

Listed:
  • Zhang, Qiaoxi

    (Institute of Economics, Corvinus University of Budapest, Budapest, Hungary)

  • Azacis, Helmuts
  • Ray, Indrajit

    (Cardiff Business School, Cardiff University)

Abstract

We analyse how privacy regulations affect information transmission when a platform observes a sensitive and a nonsensitive signal. If privacy is sufficiently important, restrictions that prohibit conditioning on the sensitive signal or require sufficient statistics can eliminate information transmission. When the platform must elicit the sensitive signal from a privacy-concerned sender, the optimal policy endogenously satisfies one or the other requirement depending on parameters.

Suggested Citation

  • Zhang, Qiaoxi & Azacis, Helmuts & Ray, Indrajit, 2025. "Information Transmission Under Privacy Concerns," Cardiff Economics Working Papers E2025/20, Cardiff University, Cardiff Business School, Economics Section.
    • Handle: RePEc:cdf:wpaper:2025/20
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    Keywords

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    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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