Recent advances in computer technology have been aiding sexual predators, stalkers, child pornographers, child traffickers, and others with the intent of exploiting children. Internet bulletin boards, chat rooms, private websites, and peer-to-peer networks are being used daily by paedophiles to...

We study a model of financial intermediation, payment choice, and privacy in the digital economy. Cash preserves anonymity but cannot be used for more efficient online transactions. By contrast, bank deposits can be used online but do not preserve anonymity. Banks use the information contained...