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What are the Economics Of Privacy?

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The economics of privacy is the idea that guarantees of privacy rights are stimulative to economic activity. It is based on the principle that an economy is essentially a system of trust. Laws and standards that guarantee privacy can increase trust between customers, partners and employees. As such, they may be stimulative.

Fragmentation of Information Technology

If governments perceive that the corporations of one nation are collecting enormous data stores about their citizenry this may be viewed as a security and economic threat. As such, nations have incentive to create laws that require data to be stored and governed locally. This favors local firms and may lead to a more diverse and fragmented technology industry.

Self Censorship

The idea that governments are putting your communications, voice commands, keystrokes, sensor data and digital activities such as web browsing in a permanent database can have a chilling effect on ideas, freedom of speech and adoption of technology such as pervasive computing.

Data vs Trust

Many firms don't leverage as much value from a customer's data as they would from the trust gained from stronger guarantees of privacy.

Data as a Risk

Data can be compromised due to information security incidents that cause reputational damage and liability.
Overview: Economics Of Privacy
The idea that privacy guarantees can stimulate economic activity.
Related Concepts


This is the complete list of articles we have written about privacy.
Big Brother
Creeping Normality
Cultural Lag
Data Liberation
Data Risks
Data Subject
Default Effect
Information Security
Media Literacy
Offline Software
Personal Data
Personal Information
Privacy By Design
Smart Cities
Social Data
Technology Ethics
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Privacy Examples

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