Dynamic Privacy Choices

Shota Ichihashi

Staff Working Papers from Bank of Canada

Abstract: I study a dynamic model of consumer privacy and platform data collection. In each period, consumers choose their level of platform activity. Greater activity generates more information about the consumer, thereby increasing platform profits. When the platform can commit to the future privacy policy, it collects information by committing to gradually decrease the level of privacy protection. In the long run, consumers lose privacy and receive low payoffs but choose high activity levels. In contrast, the platform with weaker commitment power may attain the commitment outcome or fail to collect any data, depending on consumer expectations regarding future privacy protection.

Keywords: Economic; models (search for similar items in EconPapers)
JEL-codes: D8 D82 D83 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2022-03
New Economics Papers: this item is included in nep-ban and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Dynamic Privacy Choices (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:22-8

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