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The effect of privacy regulation on the data industry: empirical evidence from GDPR

2023/10/19 by Guy Aridor, Yeon‐Koo Che, Tobias Salz
Business, Management and Accounting · Social Sciences · #Consumer Market Behavior and Pricing #Digital Platforms and Economics #Privacy, Security, and Data Protection

paper · pdf · doi:10.1111/1756-2171.12455

openalex publication_date 2023/10/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31

Abstract

Abstract Utilizing a novel dataset from an online travel intermediary, we study the effects of the EU's General Data Protection Regulation (GDPR). The opt‐in requirement of GDPR resulted in a 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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