Reciprocal privacy invasion and taxation of online map services

Koji Domon, Michael Y. Yuan, Zhengyi Zhang

European Journal of Comparative Economics, 2025, vol. 22, issue 2, 265 - 286

Abstract: This paper considers privacy invasion, such as Street View, resulting from map services on the Internet. Reciprocal privacy invasion can develop into a Prisoners’ Dilemma. A portal site remedies such a dilemma by supplying personal information. However, under excessive supply, the problem worsens with negative utility. Whether such a situation develops or not is dependent on the cost of using a service and the coverage of information. We consider two types of taxation, on personal information and advertisements, in order to bring about a social optimum. Furthermore, we obtain a condition in which taxation brings about large tax revenues to be redistributed to privacy-encroached agents.

Keywords: Privacy Invasion; Street View (search for similar items in EconPapers)
JEL-codes: K20 L14 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:liu:liucej:v:22:y:2025:i:2:p:265-286

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European Journal of Comparative Economics is currently edited by Matteo Migheli, Giovanni Ramello, Koji Domon, Peter Grajzl, David M. Kemme, Alessandro Melcarne, Marcello Signorelli and Richard Watt

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