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The Influence of (Im)perfect Data Privacy on the Acquisition of Personal Health Data

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  • Simeon Schudy
  • Verena Utikal

Abstract

We investigate the consequences of imperfect data privacy on information acquisition of personal health data. In a game of persuasion with ex-ante symmetric information players decide on whether or not to acquire and reveal information about their personal health status to convince a decision maker to interact. We contrast three institutional settings: automatic dissemination of acquired information, perfect data privacy and imperfect data privacy. Assuming that the ex-ante expected payoff of an interaction with an unknown type for the decision maker is positive, equilibria with complete information acquisition and complete information revelation exist only under perfect and imperfect data privacy. Equilibria without any information acquisition exist under all institutional settings. We test our predictions in a laboratory experiment. Automatic dissemination leads to incomplete information acquisition. Both imperfect and perfect data privacy yield almost complete information acquisition and thus imperfect data privacy does not reduce the amount of acquired information.

Suggested Citation

  • Simeon Schudy & Verena Utikal, 2012. "The Influence of (Im)perfect Data Privacy on the Acquisition of Personal Health Data," TWI Research Paper Series 76, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    • Handle: RePEc:twi:respas:0076
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    More about this item

    Keywords

    data privacy; endogenous information acquisition; health; experiment; unraveling;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I1 - Health, Education, and Welfare - - Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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