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Privacy Elasticity: A (Hopefully) Useful New Concept

Inbal Dekel, Rachel Cummings, Ori Heffetz and Katrina Ligett

No 32903, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Privacy considerations and their effects on behavior are becoming increasingly important. Yet the extremes of full and no privacy are rarely an option. How much does behavior change with small changes in privacy? Dekel et al. (2023) introduce the concept of privacy elasticity, the responsiveness of economic variables to small changes in privacy protections. This concept combines elasticity—a key economic measure of responsiveness of one variable to changes in another—and differential privacy—a computer science theory emerging as the standard tool for protecting and quantifying privacy. Together, they create a measure of privacy elasticity that is portable and comparable across contexts. The applicability of this concept is demonstrated by reviewing how privacy elasticity can be estimated in a public-good lab experiment.

JEL-codes: C91 D82 Z00 (search for similar items in EconPapers)
Date: 2024-09
New Economics Papers: this item is included in nep-exp and nep-ipr
Note: PE
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Forthcoming: Privacy Elasticity: A (Hopefully) Useful New Concept , Inbal Dekel, Rachel Cummings, Ori Heffetz, Katrina Ligett. in Data Privacy Protection and the Conduct of Applied Research: Methods, Approaches and their Consequences , Gong, Hotz, and Schmutte. 2024

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