Competition, Privacy, and Multi-Homing

Jean-Marc Zogheib

No 2023-34, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: Two digital firms compete in prices and information disclosure levels. A consumer signing up to one firm's service decides how much personal information to provide. We find that firms essentially trade-off between consumer valuations and disclosure levels to determine their business strategies when consumers single-home. Under multi-homing, business strategies are more complex to assess and may completely shift compared to single-homing. All things being equal, implementing a strict privacy regime with no data disclosure can be optimal under single-homing, while a soft privacy regime with data disclosure may be preferred under multi-homing.

Keywords: competition; online privacy; information disclosure; multi-homing. (search for similar items in EconPapers)
JEL-codes: D11 D40 L21 L41 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2023
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2023-34

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