Data Privacy as a Prisoner's Dilemma
Companies would be better off if they all provided meaningful privacy protections for consumers, but privacy is a collective action problem for them: many companies would love to see the ecosystem fixed, but no one wants to put themselves at a competitive disadvantage by imposing unilateral limitations on what they can do with user data.
The solution -- and one endorsed by the essay -- is a comprehensive privacy law. That reduces the incentive to defect.
Posted on July 28, 2011 at 6:27 AM • 22 Comments