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Lefouili, Yassine
, Madio, Leonardo and Toh, Ying Lei
(2024)
Privacy regulation and quality-enhancing innovation.
Journal of Industrial Economics.
(In Press)
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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: | Article |
|---|---|
| Language: | English |
| Date: | 2024 |
| Refereed: | Yes |
| Place of Publication: | Oxford |
| 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) |
| Site: | UT1 |
| Date Deposited: | 09 Oct 2023 08:49 |
| Last Modified: | 18 Apr 2024 07:22 |
| OAI Identifier: | oai:tse-fr.eu:128184 |
| URI: | https://publications.ut-capitole.fr/id/eprint/48070 |
Available Versions of this Item
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Privacy Regulation and Quality-Enhancing Innovation. (deposited 13 Apr 2017 14:46)
- Privacy regulation and quality-enhancing innovation. (deposited 09 Oct 2023 08:49) [Currently Displayed]
