Choe, Chongwoo; Matsushima, Noriaki; Shekhar, Shiva - 2023
We study the GDPR's opt-in requirement in a model with a firm that provides a digital service and consumers who are … firm. We show that the GDPR boosts demand for the service by allowing consumers with high privacy costs to buy the service … GDPR, implying that the GDPR can be welfare-improving. But if the firm's revenue is largely from data monetization, then …