Privacy and Innovation

Goldfarb, Avi; Tucker, Catherine

doi:10.3386/w17124

Cited by 11 publications

(8 citation statements)

References 18 publications

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“…First, because this ad product and data did not exist at the time of the natural experiment, this procedure assumes that the desire for privacy controls remains static in the target groups over time or at least that if there was a change, all target groups changed at the same rate. This assumption is based on empirical evidence that suggests that although the absolute level of privacy desires can change, the rate of change across demographic groups does not differ (Goldfarb and Tucker 2012).…”

Section: Discussionmentioning

confidence: 99%

Social Networks, Personalized Advertising, and Privacy Controls

Tucker

2013

Journal of Marketing Research

594

213

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This paper investigates how internet users' perception of control over their personal information affects how likely they are to click on online advertising. The paper uses data from a randomized field experiment that examined the relative effectiveness of personalizing ad copy to mesh with existing personal information on a social networking website. The website gave users more control over their personally identifiable information in the middle of the field test. The website did not change how advertisers used anonymous data to target ads. After this policy change, users were twice as likely to click on personalized ads. There was no comparable change in the effectiveness of ads that did not signal that they used private information when targeting. The increase in effectiveness was larger for ads that used less commonly available private information to personalize their message. This suggests that giving users the perception of more control over their private information can be an effective strategy for advertising-supported websites.

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Section: Discussionmentioning

confidence: 99%

Social Networks, Personalized Advertising, and Privacy Controls

Tucker

2013

Journal of Marketing Research

594

213

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“…Similarly, in the privacy realm, we can reconcile contrasting findings by reiterating, first, the contextual nature of privacy trade‐offs; second, by observing that binary metrics (such as absence vs. presence of regulation) are too coarse to capture the complex effects of privacy protection. The decisive factor in determining the effect of privacy regulation on innovation or welfare may not be its existence, but the specifics of the intervention (Goldfarb & Tucker, 2012). Well thought‐out interventions can protect privacy and stimulate growth (Adjerid et al., 2016); poorly thought‐out ones may achieve neither goal.…”

Section: The Supply Side Of Privacymentioning

confidence: 99%

Secrets and Likes: The Drive for Privacy and the Difficulty of Achieving It in the Digital Age

2020

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We review different streams of social science literature on privacy with the goal of understanding consumer privacy decision making and deriving implications for policy. We focus on psychological and economic factors influencing both consumers' desire and consumers' ability to protect their privacy, either through individual action or through the implementation of regulations applying to firms. Contrary to depictions of online sharing behaviors as careless, we show how consumers fundamentally care about online privacy, and present evidence of numerous actions they take to protect it. However, we also document how prohibitively difficult it is to attain desired, or even desirable, levels of privacy through individual action alone. The remaining instrument for privacy protection is policy intervention. However, again for both psychological and economic reasons, the collective impetus for adequate intervention is often countervailed by powerful interests that oppose it.

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“…Although this discussion is put in a wider context of Artificial Intelligence (AI), the authors make clear that an expanded AI industry, in which data flows are an important factor, would have clear implications for services trade. Similarly, Goldfarb and Tucker (2012) point out that privacy regulations may harm innovative activities, particularly in services. They present the results of previous case studies they undertook with respect to two services sectors, namely health services and online advertising.…”

Section: Previous Literaturementioning

confidence: 99%

Do data policy restrictions inhibit trade in services?

Marel

Ferracane

2021

Rev World Econ

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This paper examines whether restrictive data policies impact trade in services over the internet. We have collected comparable information on a variety of policy measures that regulate data for a wide group of countries for the years 2006-2016. This information is compiled in a weighted index that assesses the restrictiveness of these countries' data policies. We distinguish between policies regulating the crossborder movement of data and policies regulating the domestic use of data. Using econometric estimations, we show that strict data policies negatively and significantly impact imports of data-intense services. Therefore, countries applying restrictive data policies, in particular with respect to the crossborder flow of data, suffer from lower levels of services traded over the internet. This negative impact is stronger for countries with better developed digital networks. The results of our analysis are significant and hold for various robustness checks.

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Privacy and Innovation

Cited by 11 publications

References 18 publications

Social Networks, Personalized Advertising, and Privacy Controls

Social Networks, Personalized Advertising, and Privacy Controls

Secrets and Likes: The Drive for Privacy and the Difficulty of Achieving It in the Digital Age

Do data policy restrictions inhibit trade in services?

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