Jullien, Bruno, Lefouili, Yassine and Riordan, Michael (2018) Privacy protection and consumer retention. TSE Working Paper, n. 18-947, Toulouse

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A website monetizes information it collects about its customers by charging third parties for targeted access to them. Allowing for third parties who are well-intentioned, a nuisance, or even malicious, the resulting consumer experiences might be good, bad, or neutral. As consumers learn from experience, the website especially risks losing those customers who suffer a bad experience. Customer retention thus motivates the website to be cautious about monetization, or to spend resources to screen third parties. We study the website's equilibrium privacy policy, its welfare properties, competition in the market for information, and the impact of regulations improving transparency and consumer control.

Item Type: Monograph (Working Paper)
Language: English
Date: August 2018
Place of Publication: Toulouse
Uncontrolled Keywords: Privacy Policy, Consumer Retention, Personal Data, Regulation
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: 05 Sep 2018 07:29
Last Modified: 29 Nov 2021 13:55
OAI Identifier: oai:tse-fr.eu:32902
URI: https://publications.ut-capitole.fr/id/eprint/26216
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