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Games 2018, 9(1), 14; doi:10.3390/g9010014

Does Imperfect Data Privacy Stop People from Collecting Personal Data?

1
Ludwig-Maximilians-University of Munich, Department of Economics, Geschwister-Scholl-Platz 1, D-80539 Munich, Germany
2
University of Erlangen-Nürnberg, Lange Gasse 20, D-90403 Nürnberg, Germany
*
Author to whom correspondence should be addressed.
Received: 15 February 2018 / Revised: 26 February 2018 / Accepted: 28 February 2018 / Published: 5 March 2018
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Abstract

Many companies try to access personal information to discriminate among consumers. We analyse how privacy regulations affect the acquisition and disclosure of information in a simple game of persuasion. Theory predicts that no data will be acquired with Disclosure Duty of collected data whereas Consent Law with perfect privacy results in complete information acquisition. Imperfect privacy, i.e., an environment in which leaks of collected data are possible, gives rise to multiple equilibria. Results from a laboratory experiment confirm the qualitative differences between Consent Law and Disclosure Duty and show that imperfect privacy does not stop people from collecting personal information. View Full-Text
Keywords: data privacy; endogenous information acquisition; experiment; unravelling; health data privacy; endogenous information acquisition; experiment; unravelling; health
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Schudy, S.; Utikal, V. Does Imperfect Data Privacy Stop People from Collecting Personal Data? Games 2018, 9, 14.

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