The Effect of Privacy Regulation on the Data Industry: Empirical Evidence from GDPR
Utilizing a novel dataset from an online travel intermediary, we study the effects of EU’s General Data Protection Regulation (GDPR). The opt-in requirement of GDPR resulted in 12.5% drop in the intermediary-observed consumers, but the remaining consumers are trackable for a longer period of time. Our findings imply that privacy conscious consumers exert privacy externalities on opt-in consumers, making them more predictable. Consistent with this finding, the average value of the remaining consumers to advertisers has increased, offsetting some of the losses from consumer opt-outs.
Published Versions
Guy Aridor & Yeon‐Koo Che & Tobias Salz, 2023. "The effect of privacy regulation on the data industry: empirical evidence from GDPR," The RAND Journal of Economics, vol 54(4), pages 695-730.
More from NBER
In addition to working papers, the NBER disseminates affiliates’ latest findings through a range of free periodicals — the NBER Reporter, the NBER Digest, the Bulletin on Retirement and Disability, the Bulletin on Health, and the Bulletin on Entrepreneurship — as well as online conference reports, video lectures, and interviews.
