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We analyze platform competition where user data is collected to improve adtargeting. Considering that users incur privacy costs, we show that the equilibrium level of data provision is distorted and can be inefficiently high or low: if overall competition is weak or if targeting benefits are...
Persistent link: https://www.econbiz.de/10011897071
The EU General Data Protection Regulation (GDPR) of 2018 introduced stringent transparency rules compelling firms to …
Persistent link: https://www.econbiz.de/10014504790
data subject rights as defined under the General Data Protection Regulation (GDPR) together with the …
Persistent link: https://www.econbiz.de/10012422200
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Protection Regulation (GDPR). It requires many firms to update their data protection strategy. It may also complicate different … evidence on the impact of the GDPR on innovation activities in firms. Exploiting panel data from the German innovation survey …, a difference-in-difference analysis shows that the GDPR stimulated additional innovation activity while shifting the …
Persistent link: https://www.econbiz.de/10013411289
Cyber attacks can impair banks operations and precipitate bank runs. When digital infrastructure is shared, banks defend themselves by investing in cybersecurity but can free-ride on the security measures of others. Ex ante free-riding by banks interacts with the ex post coordination frictions...
Persistent link: https://www.econbiz.de/10013164708
Although blockchain technology and cryptocurrencies have grown in popularity over the past years, there does not seem to be a consensus if they bring any value to economic interactions. In this paper, I argue that a fundamental value the blockchain provides is commitment. I develop a model of an...
Persistent link: https://www.econbiz.de/10013460355
We study markets for sensitive personal information. An agent wants to communicate with another party but any revealed information can be intercepted and sold to a third party whose reaction harms the agent. The market for information induces an adverse sorting effect, allocating the information...
Persistent link: https://www.econbiz.de/10011380192
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measures that target the data-awareness of consumers, such as the European GDPR. …
Persistent link: https://www.econbiz.de/10013191335