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Dengler, Sebastian and Prüfer, Jens 
ORCID: https://orcid.org/0000-0001-7203-9711
(2021)
Consumers' privacy choices in the era of big data.
Games and Economic Behavior, 130.
pp. 499-520.
ISSN 0899-8256
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Abstract
Recent progress in information technologies provides sellers with detailed knowledge about consumers' preferences, approaching perfect price discrimination in the limit. We construct a model where consumers with less strategic sophistication than the seller's pricing algorithm face a trade-off when buying. They choose between a direct, transaction cost-free sales channel and a privacy-protecting, but costly, anonymous channel. We show that the anonymous channel is used even in the absence of an explicit taste for privacy if consumers are not too strategically sophisticated. This provides a micro-foundation for consumers' privacy choices. Some consumers benefit but others suffer from their anonymization.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | big data,level-k thinking,perfect price discrimination,privacy,finance,economics and econometrics ,/dk/atira/pure/subjectarea/asjc/2000/2003 |
| Faculty \ School: | Faculty of Social Sciences > School of Economics |
| Related URLs: | |
| Depositing User: | LivePure Connector |
| Date Deposited: | 12 Sep 2022 10:31 |
| Last Modified: | 01 Nov 2022 16:30 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/88107 |
| DOI: | 10.1016/j.geb.2021.09.007 |
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