higher value of traded information and therefore has to grant the agent more privacy. …

We introduce consumers with intrinsic privacy preferences into the monopolistic non-linear pricing model. Next to … classical consumers, there is a share of data-sensitive consumers who incur a privacy cost if their purchase reveals information … to the monopolist. The monopolist discriminates between privacy types using privacy mechanisms which consist of a direct …

This paper analyzes consumers' privacy choice concerning their private data and firms' ensuing pricing strategy. The … experiment. We find that there is a large share of consumers who reveal their private data. Particularly, less privacy …

privacy costs, we show that the equilibrium level of data provision is distorted and can be inefficiently high or low: if …

higher value of traded information and therefore has to grant the agent more privacy. …

model of horizontal product differentiation, firms use consumer information to price discriminate. I contrast a full privacy … and a no privacy benchmark with intermediate regimes in which the firms target consumers only partially. No privacy is … traditionally detrimental to industry profits. Instead, I show that with partial privacy firms are always better-off with price …

consensus on whether this new privacy regulation is beneficial or detrimental to innovation. This study provides empirical …