Lecture 12 Flashcards
(16 cards)
What does Belleflamme and Vergote (2016) suggest about hiding and GDPR?
GDPR reduces the cost of hiding (c ↓), which can lower consumer surplus due to strategic externalities.
What is the theoretical result from Campbell et al. (2015)?
Privacy regulation may discourage specialist website entry and favor generalists, reducing competition and welfare.
What did Aridor et al. (WP) find about GDPR’s impact on data usage?
GDPR led to 12.5% fewer cookies and increased the value of remaining consumers, supporting existence of strategic externalities.
What did Johnson et al. (WP) find about GDPR and vendor concentration?
GDPR increased vendor market concentration by 17% initially, but long-term effects mostly faded, except in advertising.
What did Jia et al. (2022) find about GDPR and venture investment?
There was a 26.1% drop in EU tech venture deals, especially among data-related, B2C, and young firms.
What unintended consequence is linked to the control paradox in GDPR?
Users may feel empowered but take more risks or reveal more data, ultimately harming welfare.
Why is GDPR difficult to evaluate?
Because its benefits (e.g. empowerment) are hard to quantify and some harms are subtle or behavioral.
What is self-regulation in the context of data?
Allowing user behavior and market forces to shape privacy norms without government intervention.
What are the pros and cons of self-regulation?
+ Efficient and adaptive. − Ignores strategic and data externalities, opacity, and behavioral biases.
What is data propertization?
Assigning users ownership rights over their personal data to create individual data markets.
What are the cons of data propertization?
Exacerbates inequality, doesn’t handle externalities or non-rivalry, and may be ethically problematic.
What are nudges in privacy regulation?
Soft interventions (like default settings) to steer users toward privacy-preserving choices without removing options.
What are limitations of nudges?
Limited scope, potentially small effect, and susceptible to exploitation by data collectors.
Why is regulating data markets difficult?
Due to the complex relation between data and welfare, behavioral biases, and data’s intangible and non-rivalrous nature.
What is regulatory capture?
When regulated industries influence or shape the regulations meant to control them, favoring themselves.
What are key unintended consequences of GDPR?
Persistence of price discrimination, anti-competitive effects, and consumer harm through strategic interactions.
