"The falling costs of collecting, storing, and processing data have allowed firms and governments to improve products and services. These same changes have also yielded databases containing detailed, individual-level data, raising privacy concerns. The Economics of Privacy summarizes the research on the economics of privacy, identifying open questions on the value of privacy; the roles of property rights and markets for privacy and for data; the relationship between privacy and inequality; and the political economy of privacy regulation. Across six chapters, several key themes emerge: It may not be possible to solve privacy concerns by creating a market for the right to privacy, even if property rights are well-defined and transaction costs are low. It is difficult to measure and to value the benefits of privacy, particularly when individuals have an intrinsic preference for privacy. Most previous attempts at valuation have focused only on quantifiable economic outcomes, such as innovation. Defining privacy through an economics lens is challenging: the broader academic and legal literature includes many distinct definitions of it, and different definitions may be appropriate in different contexts. The Economics of Privacy explores a variety of frameworks for examining these questions, offering a range of new perspectives on the role of economics research in understanding the benefits and costs of privacy and of data flows"--
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