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Lefouili, Yassine
, Madio, Leonardo and Toh, Ying Lei
(2017)
Privacy Regulation and Quality-Enhancing Innovation.
TSE Working Paper, n. 17-795, Toulouse
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Abstract
We analyze how a privacy regulation taking the form of a cap on information disclosure affects quality-enhancing innovation incentives by a monopolist--who derives revenues solely from disclosing user data to third parties--and consumer surplus. If the share of privacy-concerned users is sufficiently small, privacy regulation has a negative effect on innovation and may harm users. However, if the share of privacy-concerned users is sufficiently large, privacy regulation has a positive effect on innovation. In this case, there is no trade-off between privacy and innovation and users always benefit from privacy regulation.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | April 2017 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Privacy Regulation, Data Disclosure, Innovation |
| JEL Classification: | D83 - Search; Learning; Information and Knowledge; Communication; Belief L15 - Information and Product Quality; Standardization and Compatibility L51 - Economics of Regulation |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 13 Apr 2017 14:46 |
| Last Modified: | 11 Sep 2023 14:26 |
| OAI Identifier: | oai:tse-fr.eu:31623 |
| URI: | https://publications.ut-capitole.fr/id/eprint/23693 |
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