Targeted advertising can benefit consumers through lower prices for access to websites, Yet, if consumers dislike that … websites collect their personal information, their welfare may go down. We study competition for consumers between websites … that can show targeted advertisements. We find that more targeting increases competition and reduces the websites' profits …

digital advertising. In this paper, we build a game-theoretic model to examine how this new policy impacts all key … their prices to achieve greater demand, leading to an increase in the advertising-based revenue; however, when the new …