Thursday, February 22, 2024

Competition, Privacy, and Multi-Homing

Competition, Privacy, and Multi-Homing

By:

Jean-Marc Zogheib

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.

URL:

http://d.repec.org/n?u=RePEc:drm:wpaper:2023-34&r=ind

https://lawprofessors.typepad.com/antitrustprof_blog/2024/02/competition-privacy-and-multi-homing.html

| Permalink

Comments

Post a comment