The Effect of Privacy Regulation on the Data Industry: Empirical Evidence from GDPR

Guy Aridor, Yeon-Koo Che and Tobias Salz

No 26900, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Utilizing a novel dataset from an online travel intermediary, we study the effects of EU’s General Data Protection Regulation (GDPR). The opt-in requirement of GDPR resulted in 12.5% drop in the intermediary-observed consumers, but the remaining consumers are trackable for a longer period of time. Our findings imply that privacy conscious consumers exert privacy externalities on opt-in consumers, making them more predictable. Consistent with this finding, the average value of the remaining consumers to advertisers has increased, offsetting some of the losses from consumer opt-outs.

JEL-codes: K24 L0 L5 L81 (search for similar items in EconPapers)
Date: 2020-03
New Economics Papers: this item is included in nep-big, nep-law, nep-pay and nep-reg
Note: IO LE
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Citations: View citations in EconPapers (8)

Published as Guy Aridor & Yeon‐Koo Che & Tobias Salz, 2023. "The effect of privacy regulation on the data industry: empirical evidence from GDPR," The RAND Journal of Economics, vol 54(4), pages 695-730.

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