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Regulating Privacy Online: An Economic Evaluation of the GDPR

Author

Listed:
  • Samuel G. Goldberg
  • Garrett A. Johnson
  • Scott K. Shriver

Abstract

Modern websites rely on personal data to design better content and to market themselves. The European Union's General Data Protection Regulation (GDPR) was intended to make access to such personal data more difficult, with the goal of protecting user privacy. We examine the GDPR's impact on website page views and revenue for 1,084 online firms using data from Adobe's website analytics platform. We find a reduction of 12 percent in both EU user website page views and website revenue recorded by the platform after the GDPR's enforcement deadline. We decompose these GDPR effects into changes in real outcomes and changes to data recording, respectively.

Suggested Citation

  • Samuel G. Goldberg & Garrett A. Johnson & Scott K. Shriver, 2024. "Regulating Privacy Online: An Economic Evaluation of the GDPR," American Economic Journal: Economic Policy, American Economic Association, vol. 16(1), pages 325-358, February.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:1:p:325-58
    DOI: 10.1257/pol.20210309
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    Citations

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    Cited by:

    1. Jing Yan, 2024. "Data privacy regulation and cross-border e-commerce," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 51(4), pages 913-927, November.
    2. Rupayan Pal & Sumit Shrivastav, 2024. "Privacy regulation, cognitive ability, and stability of collusion," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2024-004, Indira Gandhi Institute of Development Research, Mumbai, India.

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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