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.
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Copy CitationGuy Aridor, Yeon-Koo Che, and Tobias Salz, "The Effect of Privacy Regulation on the Data Industry: Empirical Evidence from GDPR," NBER Working Paper 26900 (2020), https://doi.org/10.3386/w26900.Download Citation
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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.
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