Interesting Research on the Economics of Privacy
New paper: “The Economics of Privacy, by Alessandro Acquisti, Curtis R. Taylor, and Liad Wagman:
Abstract: This article summarizes and draws connections among diverse streams of empirical and theoretical research on the economics of privacy. Our focus is on the economic value and consequences of privacy and of personal information, and on consumers’ understanding of and decisions about the costs and benefits associated with data protection and data sharing. We highlight how the economic analysis of privacy evolved through the decades, as, together with progress in information technology, more nuanced issues associated with the protection and sharing of personal information arose. We use three themes to connect insights from the literature. First, there are theoretical and empirical situations where the protection of privacy can both enhance and detract from economic surplus and allocative efficiency. Second, consumers’ ability to make informed decisions about their privacy is severely hindered, because most of the time they are in a position of imperfect information regarding when their data is collected, with what purposes, and with what consequences. Third, specific heuristics can profoundly influence privacy decision-making. We conclude by highlighting some of the ongoing issues in the privacy debate.
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Brain in a can • March 7, 2016 8:19 PM
The economics of the universal human right to privacy, how innovative. Can’t wait till they apply their powerful analytical methods to the economic surplus and allocative efficiency of other rights. A nuanced view of freedom from slavery could really benefit slave consumers’ ability to make informed decisions. And freedom from torture is provably suboptimal in important empirical and theoretical situations like when you want to make people do stuff they don’t want to do. Life, liberty, pursuit of happiness? What we need is some market discipline to rationalize that.