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Data Privacy in Digital Markets

Project description

Modelling the verifiability effect in data privacy

Data privacy laws regulate how data is collected, stored and shared to safeguard consumers from excessive price discrimination in digital markets. Based on the novel premise that data has a verifiability effect, the EU-funded PRIVDIMA project aims to comprehensively study data privacy regulation by explicitly modelling this verifiability effect. The project intends to integrate verifiability into state-of-the-art mechanism and information design theories, enhancing their applicability for analysing a new range of problems where verifiability is crucial. PRIVDIMA seeks to offer practical policy recommendations for data privacy, regulating data use to prevent price discrimination. Through the regulation of data collection, it aims to prevent the release of private information, ensuring equitable benefits for consumers in the era of digitalisation.

Objective

Focusing on verifiability, PRIVDIMA studies the regulation of data privacy to protect consumers from excessive price discrimination in digital markets.

PRIVDIMA breaks with previous literature by acknowledging that data has a verifiability effect. It proposes a study of data privacy regulation by explicitly modelling this verifiability effect. Its motivation is as follows: 1) data collection in digital markets renders private information verifiable; 2) due to unravelling, this verifiability effect of data impacts regulation at a fundamental level; 3) extant work on privacy regulation abstracts from the effect; 4) data privacy rules that ignore verifiability effects lead to misguided regulation. PRIVDIMA is to rectify this.

PRIVDIMA has 3 objectives. Objective 1 is to incorporate verifiability in the state-of-the-art theories of mechanism and information design, readying them for the analysis of a new range of problems where verifiability matters. Objective 2 is to derive concrete policy implications for data privacy based on regulating the use of data to limit price discrimination. It yields new insights on regulating both long and short run contracts in models of behaviour-based price discrimination. Objective 3 is to derive concrete policy implications for data privacy based on regulating the collection of data. It yields insights on how to prevent an unravelling of private information by which the verifiability effect of data hurts consumers.

Objective 1 implies a major advancement for the field of economic theory. Objectives 2 and 3 ensure that consumers obtain a fair share of the benefits from digitalization, promoting not only equity and fairness, but also public support for future digitalization, allowing societies to reap its benefits while avoiding social conflict.

As PRIVDIMA’s PI, I have a proven track record in developing and applying the required methods, and expertise in working with both verifiable and non-verifiable information.

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

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HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

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(opens in new window) ERC-2022-ADG

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Host institution

HUMBOLDT-UNIVERSITAET ZU BERLIN
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 860 125,00
Address
UNTER DEN LINDEN 6
10117 Berlin
Germany

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Region
Berlin Berlin Berlin
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 860 125,00

Beneficiaries (1)

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