HomePublications

Does data protection legislation increase the quality of internet services?

Research output: Contribution to journalArticle

Documents

  • Accepted_Manuscript

    Accepted author manuscript, 576 KB, PDF document

    Embargo ends: 5/02/22

DOI

Authors

Organisational units

Abstract

Digital firms attract consumers and collect their data by offering service enhancements and data security. These require separate types of investment. In light of the GDPR, data collection now requires explicit consumer consent, i.e. opt-in. This changes the consumer default option and the data provision decision when consumers are loss averse. We examine the consequences for investment. We set out the conditions under which opt-in increases both types of investment and when security comes at the expense of service quality. We further find that most consumer types gain, even when service quality falls.

Details

Original languageEnglish
Article number109463
JournalEconomics Letters
Volume195
Early online date6 Aug 2020
DOIs
Publication statusPublished - Oct 2020
Peer-reviewedYes

View graph of relations

ID: 183550028

Related by journal
  1. When does ambiguity fade away?

    Research output: Contribution to journalArticle

  2. How easy is it to understand consumer finance?

    Research output: Contribution to journalArticle