EconPapers    
Economics at your fingertips  
 

Privacy and Platform Competition

Philipp Dimakopoulos () and Slobodan Sudaric ()
Additional contact information
Philipp Dimakopoulos: Humboldt-Universität zu Berlin
Slobodan Sudaric: Humboldt-Universität zu Berlin

No 2017003, Working Papers from Berlin Doctoral Program in Economics and Management Science (BDPEMS)

Abstract: We analyze platform competition where user data is collected to improve adtargeting. Considering that users incur privacy costs, we show that the equilibrium level of data provision is distorted and can be inefficiently high or low: if overall competition is weak or if targeting benefits are low, too much private data is collected, and vice-versa. Further, we find that softer competition on either market side leads to more data collection, which implies substitutability between competition policy effects on both market sides. Moreover, if platforms engage in two-sided pricing, data provision would be efficient.

Keywords: platform competition; user data; nuisance costs; ad targeting; privacy (search for similar items in EconPapers)
JEL-codes: D43 L13 L40 L86 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic and nep-pay
Date: 2017-08-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://repec.bdpems.de/repec/bdp/wpaper/pdf/WP_2017-03.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdp:wpaper:2017003

Access Statistics for this paper

More papers in Working Papers from Berlin Doctoral Program in Economics and Management Science (BDPEMS) Contact information at EDIRC.
Bibliographic data for series maintained by Jenny Schmiedel ().

 
Page updated 2019-07-16
Handle: RePEc:bdp:wpaper:2017003