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Privacy and Personal Data Collection with Information Externalities
Abstract
We provide a theoretical model of privacy in which data collection requires consumers' consent and consumers are fully aware of the consequences of such consent. Nonetheless, excessive collection of personal information arises in the monopoly market equilibrium which results in excessive loss of privacy compared to the social optimum. In a fragmented market with a continuum of firms, no individual website has incentives to collect and monetize...
Paper Details
Title
Privacy and Personal Data Collection with Information Externalities
Published Date
Jan 1, 2018
Journal
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History