Players have privacy concerns that may affect their choice of actions in strategic settings. We use a variant of signaling games to model this effect and study its relation to pooling behavior, misrepresentation of information, and inefficiency

I study the welfare and price implications of consumer privacy. A consumer discloses information to a multi-product seller, which learns about his preferences, sets prices, and makes product recommendations. Although the consumer benefits from accurate recommendations, the seller may use the...

Privacy is a common concern in markets. We study dynamic markets based on the uniform-price double auction with I heterogeneous traders who have private information. Traders' demand schedules can condition on the statistics of past and current outcomes. Equilibrium strategies depend on the...

I study the role of privacy in bargaining. A seller makes offers every instant, without commitment, to a privately informed buyer. Potential competing buyers (entrants) can choose to interrupt the negotiation by triggering a bidding war. Entrants either observe the offers (public bargaining) or...

We analyze repeated games in which players have private information about their levels of patience and in which they would like to maintain the privacy of this information vis-a-vis third parties. We show that privacy protection in the form of shielding players' actions from outside observers is...

Mobile in-app advertising is now the dominant form of digital advertising. While these ads have excellent user-tracking properties, they have raised concerns among privacy advocates. This has resulted in an ongoing debate on the value of different types of targeting information, the incentives...

What should be the minimum value of data security or privacy to a customer? We reason that at a minimum this value should be equal to the premium charged by an insurer for cyber insurance that compensates the customer for the claims resulting from the data security and privacy breaches. We...

Telemonitoring devices can be used to screen consumer characteristics and mitigate information asymmetries that lead to adverse selection in insurance markets. Nevertheless, some consumers value their privacy and dislike sharing private information with insurers. In a second-best efficient...

We analyze the costs and benefits of using social image to foster virtuous behavior. A Principal seeks to motivate reputation-conscious agents to supply a public good. Each agent chooses how much to contribute based on his own mix of public-spiritedness, private signal about the value of the...