Does data protection legislation increase the quality of internet services?

Lam, Wynne and Lyons, Bruce (2020) Does data protection legislation increase the quality of internet services? Economics Letters, 195. ISSN 0165-1765

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Abstract

Digital firms attract consumers and collect their data by offering service enhancements and data security. These require separate types of investment. In light of the GDPR, data collection now requires explicit consumer consent, i.e. opt-in. This changes the consumer default option and the data provision decision when consumers are loss averse. We examine the consequences for investment. We set out the conditions under which opt-in increases both types of investment and when security comes at the expense of service quality. We further find that most consumer types gain, even when service quality falls.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > Norwich Business School Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Responsible Business Regulation Group Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Industrial Economics
Depositing User:	LivePure Connector
Date Deposited:	10 Aug 2020 23:53
Last Modified:	25 Oct 2024 23:52
URI:	https://ueaeprints.uea.ac.uk/id/eprint/76379
DOI:	10.1016/j.econlet.2020.109463

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