The effect of privacy regulation on the data industry: empirical evidence from GDPR

Guy Aridor, Yeon‐Koo Che and Tobias Salz

RAND Journal of Economics, 2023, vol. 54, issue 4, 695-730

Abstract: Utilizing a novel dataset from an online travel intermediary, we study the effects of the EU's General Data Protection Regulation (GDPR). The opt‐in requirement of GDPR resulted in a 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.

Date: 2023
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https://doi.org/10.1111/1756-2171.12455

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Persistent link: https://EconPapers.repec.org/RePEc:bla:randje:v:54:y:2023:i:4:p:695-730

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