Economic Research on Privacy Regulation: Lessons From the GDPR and Beyond

Johnson, Garrett

doi:10.2139/ssrn.4290849

Cited by 3 publications

(2 citation statements)

References 32 publications

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“…These studies consistently show that the impact of the GDPR is more nuanced than the industry's expectations. As Johnson (2022) points out, among the challenges to studying the GDPR's impact, a lack of a clean control group and the fact that the GDPR impacts data observability pose big hurdles to researchers. Different from most GDPR studies, our data set comes directly from a publisher, enabling us to have a clean control group and circumvent data observability issues.…”

Section: Literature Reviewmentioning

confidence: 99%

The Early Impact of GDPR Compliance on Display Advertising: The Case of an Ad Publisher

Wang¹,

Jiang²,

Yang³

2023

Journal of Marketing Research

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The European Union (EU)’s General Data Protection Regulation (GDPR), with its explicit consent requirement, may restrict the use of personal data and shake the foundations of online advertising. The ad industry predicted drastic loss of revenue from GDPR compliance and has been seeking alternative ways of targeting. Taking advantage of an event created by an ad publisher’s request for explicit consent from users with EU IP addresses, the authors find that for a publisher that uses a pay-per-click model, has the capacity to leverage both user behavior and webpage content information for advertising, and observes high consent rates, GDPR compliance leads to modest negative effects on ad performance, bid prices, and ad revenue. The changes in ad metrics can be explained by temporal variations in consent rates. The impact is most pronounced for travel and financial services advertisers and least pronounced for retail and consumer packaged goods advertisers. The authors further find that webpage context can compensate for the loss of access to users’ personal data, as the GDPR’s negative impact is less pronounced when ads are posted on webpages presenting relevant content. The results suggest that publishers and advertisers should leverage webpage-content-based targeting in a post-GDPR world.

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Section: Literature Reviewmentioning

confidence: 99%

The Early Impact of GDPR Compliance on Display Advertising: The Case of an Ad Publisher

Wang¹,

Jiang²,

Yang³

2023

Journal of Marketing Research

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“…Prior to interacting with the users, the monopolist sets its privacy policy (a disclosure level), 4 and decides how much to invest in innovation (e.g., quality of the sharing tools, new features). The firm's innovation and disclosure levels are observed by users, who then decide whether to use the service 1 A stream of recent studies has studied the intended and unintended effects of privacy regulations, providing an evaluation of the EU GDPR (see e.g., Johnson [2022]).…”

Section: Introductionmentioning

confidence: 99%

Privacy Regulation and Quality‐Enhancing Innovation*

Lefouili,

Madio,

Toh

2023

The J Industrial Economics

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We analyze how a privacy regulation taking the form of a cap on information disclosure affects quality‐enhancing innovation incentives by a monopolist—who derives revenues solely from disclosing user data to third parties—and consumer surplus. If the share of privacy‐concerned users is sufficiently small, privacy regulation has a negative effect on innovation and may harm users. However, if the share of privacy‐concerned users is sufficiently large, privacy regulation has a positive effect on innovation. In this case, there is no trade‐off between privacy and innovation and users always benefit from privacy regulation.

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