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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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
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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