Abstract

Consumers often value products whose purchase could also release sensitive data about themselves or otherwise intrude on their privacy. In many cases, consumers do not know exactly how great this privacy risk is , but they can engage in some research to learn more about it. Alternatively, the government can choose to prohibit products that pose sufficiently great privacy risks. Whether or not the government does so will affect both the consumers purchase and research decision. This paper analyses when it is optimal to ban such products when consumers can become informed at a cost. It also compares the regulatory policy of banning products because of their privacy risks to taxing them under the assumption that consumers can make better inferences from bans than taxes. Lastly, the paper analyzes how such regulations might affect ex ante investment incentives.

Paper

Draft paper for this seminar. 

Practicalities

This event will be a hybrid event. The seminar will take place in Roeterseiland campus (REC) building A, room number A3.01 (Research Seminar room on the 3rd floor), and will also be streamed online via Zoom:

The Zoom link will be specified in the registration confirmation email upon registration for the event.

About the speaker 

Abraham L. Wickelgren is the Fred and Emily Wulff Chair at the University of Texas Law School. He is currently a co-editor of the Journal of Law, Economics, & Organization and formerly was the co-editor of the American Law and Economics Review. Read more here. 

About ACLE

The Amsterdam Center for Law and Economics (ACLE) is a joint initiative of the Faculty of Economics and Business and the Faculty of Law at the University of Amsterdam. The objective of the ACLE is to promote high-quality interdisciplinary research at the intersection between law and economics.