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A theory of transactions privacy

Author

Listed:
  • Charles M. Kahn
  • James J. McAndrews
  • William Roberds

Abstract

In this paper, we consider the costs and benefits of transactions privacy. In the environment we consider, privacy is the concealment of potentially useful information, but concealment also potentially bestows benefits. In some versions of the environment, the standard Coasian logic applies: given an unambiguous initial assignment of rights and sufficient flexibility in contracting, efficiency in information revelation will result. Coasian bargaining may be impeded, however, by either an inability to make certain commitments or by the presence of significant investments that must be made before the transaction occurs. In such cases, initial assignments of rights (for example, privacy laws) can have consequences for efficiency

Suggested Citation

  • Charles M. Kahn & James J. McAndrews & William Roberds, 2000. "A theory of transactions privacy," FRB Atlanta Working Paper 2000-22, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:2000-22
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    References listed on IDEAS

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    8. Posner, Richard A, 1981. "The Economics of Privacy," American Economic Review, American Economic Association, vol. 71(2), pages 405-409, May.
      • Posner, Richard A., 1980. "The Economics of Privacy," Working Papers 16, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
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    Cited by:

    1. Kahn, Charles M. & Roberds, William, 2008. "Credit and identity theft," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 251-264, March.
    2. 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.
    3. Jeffrey M. Lacker, 2001. "The economics of financial privacy : to opt out or opt in? 2001 annual report of the Federal Reserve Bank of Richmond," Annual Report, Federal Reserve Bank of Richmond.
    4. Kai-Lung Hui & I.P.L. Png, 2005. "The Economics of Privacy," Industrial Organization 0505007, University Library of Munich, Germany, revised 29 Aug 2005.
    5. Charles M. Kahn & James McAndrews & William Roberds, 2005. "Money Is Privacy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(2), pages 377-399, May.
    6. 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.
    7. Jaisingh, Jeevan & Barron, Jack & Mehta, Shailendra & Chaturvedi, Alok, 2008. "Privacy and pricing personal information," European Journal of Operational Research, Elsevier, vol. 187(3), pages 857-870, June.
    8. Jeffrey M. Lacker, 2002. "The economics of financial privacy : to opt out or to opt in?," Economic Quarterly, Federal Reserve Bank of Richmond, issue Sum, pages 1-16.

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