The Effect of Privacy Regulation on the Data Industry: Empirical Evidence from Gdpr

62 Pages Posted: 30 Mar 2020 Last revised: 3 Jul 2021

See all articles by Guy Aridor

Guy Aridor

Columbia University; Columbia University, Graduate School of Arts and Sciences, Department of Economics

Yeon-Koo Che

Columbia University

Tobias Salz

MIT

Multiple version iconThere are 2 versions of this paper

Date Written: March 2020

Abstract

Utilizing a novel dataset from an online travel intermediary, we study the effects of EU’s General Data Protection Regulation (GDPR). The opt-in requirement of GDPR resulted in 12.5% drop in the intermediary-observed consumers, but the remaining consumers are trackable for a longer period of time. These findings are consistent with privacy-conscious consumers substituting away from less efficient privacy protection (e.g, cookie deletion) to explicit opt out—a process that would make opt-in consumers more predictable. Consistent with this hypothesis, the average value of the remaining consumers to advertisers has increased, offsetting some of the losses from consumer opt-outs.

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Suggested Citation

Aridor, Guy and Che, Yeon-Koo and Salz, Tobias, The Effect of Privacy Regulation on the Data Industry: Empirical Evidence from Gdpr (March 2020). NBER Working Paper No. w26900, Available at SSRN: https://ssrn.com/abstract=3563968

Guy Aridor (Contact Author)

Columbia University ( email )

420 West 118th St.
New York, NY 10027
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Columbia University, Graduate School of Arts and Sciences, Department of Economics

420 W. 118th Street
New York, NY 10027
United States

Yeon-Koo Che

Columbia University ( email )

420 W. 118th Street
New York, NY 10027

Tobias Salz

MIT ( email )

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Cambridge, MA 02142
United States

HOME PAGE: http://https://economics.mit.edu/faculty/tsalz

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