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Competition, Privacy, and Multi-Homing

Author

Listed:
  • Jean-Marc Zogheib

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

Two digital firms compete in prices and information disclosure levels. A consumer signing up to one firm's service decides how much personal information to provide. We find that firms essentially trade-off between consumer valuations and disclosure levels to determine their business strategies when consumers single-home. Under multi-homing, business strategies are more complex to assess and may completely shift compared to single-homing. All things being equal, implementing a strict privacy regime with no data disclosure can be optimal under single-homing, while a soft privacy regime with data disclosure may be preferred under multi-homing.

Suggested Citation

  • Jean-Marc Zogheib, 2023. "Competition, Privacy, and Multi-Homing," Working Papers hal-04330753, HAL.
    • Handle: RePEc:hal:wpaper:hal-04330753
    Note: View the original document on HAL open archive server: https://hal.science/hal-04330753
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