Dynamic Privacy Choices

Ichihashi, Shota

doi:10.2139/ssrn.3472151

Cited by 4 publications

(2 citation statements)

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“…Contrasting complementarities between the seller's and the buyer's private information as studied here, a recent literature studies data externalities (e.g., Choi et al., 2019; Acemoglu et al., 2019; Bergemann et al., 2019; Ichihashi, 2021). Because they reflect informational interdependencies between the consumers themselves, these externalities are orthogonal to the externalities that I study.…”

Section: Related Literaturementioning

confidence: 99%

Correlation‐savvy sellers

Strausz

2024

The RAND J of Economics

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A multi‐product monopolist sells sequentially to a buyer who privately learns his valuations. Using big data, the monopolist learns the intertemporal correlation of the buyer's valuations. Perfect price discrimination is generally unattainable—even when the seller learns the correlation perfectly, has full commitment, and in the limit where the consumption good about which the buyer has ex ante private information becomes insignificant. This impossibility is due to informational externalities that require information rents for the buyer's later consumption. These rents induce upward and downward distortions, violating the generalized no distortion at the top principle of dynamic mechanism design.

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Section: Related Literaturementioning

confidence: 99%

Correlation‐savvy sellers

Strausz

2024

The RAND J of Economics

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“…Razzano [60] approaches the privacy paradox from a collective rights perspective, conceptualizing it in terms of public rather than individual dimensions. Ichihashi [61] claimed, "consumers become 'addicted' to the platform, whereby they lose privacy and receive low payoffs, but continue to choose high activity levels".…”

Section: Literature Reviewmentioning

confidence: 99%

Harnessing Soft Logic to Represent the Privacy Paradox

2022

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The digital era introduces a significant issue concerning the preservation of individuals’ privacy. Each individual has two autonomous traits, privacy concern which indicates how anxious that person is about preserving privacy, and privacy behavior which refers to the actual actions the individual takes to preserve privacy. The significant gap between these two traits is called the privacy paradox. While the existence and the extensive distribution of the privacy paradox is widely-considered in both academic and public discussion, no convincing explanation of the phenomenon has been provided. In this study we harness a new mathematical approach, “soft logic,” to better represent the reality of the privacy paradox. Soft numbers extend zero from a singularity to an infinite one-dimensional axis, thus enabling the representation of contradictory situations that exist simultaneously, i.e., a paradox. We develop a mathematical model for representing the privacy paradox with soft numbers, and demonstrate its application empirically. This new theory has the potential to address domains that mix soft human reality with robust technological reality.

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Comments on Cong, Wei, Xie, and Zhang (2021) “Endogenous Growth with Multiple Uses of Data”

Ichihashi

2022

Journal of Economic Dynamics and Control

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Dynamic Privacy Choices

Cited by 4 publications

References 0 publications

Correlation‐savvy sellers

Correlation‐savvy sellers

Harnessing Soft Logic to Represent the Privacy Paradox

Comments on Cong, Wei, Xie, and Zhang (2021) “Endogenous Growth with Multiple Uses of Data”

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