Erschienen in:FTC Bureau of Economics Working Paper ; No. 323
Umfang:
1 Online-Ressource (45 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2477052
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 1, 2014 erstellt
Beschreibung:
We compare the private and social incentives for privacy when sellers can commit to transparent privacy policies that are understood by consumers. The purpose is to establish a baseline for how well markets perform when firms' privacy policies are common knowledge. In this setting, if the market is competitive, the outcome is first best or firms provide too much privacy. For monopolized markets, we obtain new results for the welfare effects of demand rotations when preferences over the good and privacy are drawn from the location-scale family, which includes the normal (probit) and logistic (logit) models of demand. We discuss the nature of the distortions and implications for policy toward privacy and the market provision of product attributes generally