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Privacy (Moving Pieces (Findings (Increase in user privacy concerns…
Privacy
Moving Pieces
Consumers do not like loss of privacy - info shared with third parties, or high targeting platforms giving away their info
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publishers make money from advertisers, give them user data.
Methodology
As long as value gained by users equals value lost in privacy, they will participate, until indifferent user
Similarly, everybody above indifferent third part will participate
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Chellappa and Shivendu, 2010.
Personalization is not a "free disposal" good
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Findings
If MVI is high and the vendor is able to provide only one level of personalization(no toolbar versions), then he can still capture the entire market by giving out coupons (Price discriminate)
If the vendor is able to costlessly version, he can capture the entire market and this maximizes consumer surplus.
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