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- W3144602181 abstract "Policymakers worldwide draft privacy laws that require trading-off between safeguardingconsumer privacy and preventing economic loss to companies that use consumer data.However, little empirical knowledge exists as to how privacy laws affect companies’performance. Accordingly, this paper empirically quantifies the effects of the enforcement ofthe EU’s General Data Protection Regulation (GDPR) on online user behavior over time,analyzing data from 6,286 websites spanning 24 industries during the 10 months before and18 months after the GDPR’s enforcement in 2018. A panel differences estimator, with asynthetic control group approach, isolates the short- and long-term effects of the GDPR onuser behavior. The results show that, on average, the GDPR’s effects on user quantity andusage intensity are negative; e.g., the numbers of total visits to a website decrease by 4.9%and 10% due to GDPR in respectively the short- and long-term. These effects could translateinto average revenue losses of $7 million for e-commerce websites and almost $2.5 millionfor ad-based websites 18 months after GDPR. The GDPR’s effects vary across websites, withsome industries even benefiting from it; moreover, more-popular websites suffer less,suggesting that the GDPR increased market concentration." @default.
- W3144602181 created "2021-04-13" @default.
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- W3144602181 date "2020-01-01" @default.
- W3144602181 modified "2023-10-16" @default.
- W3144602181 title "The Impact of Privacy Laws on Online User Behavior" @default.
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- W3144602181 doi "https://doi.org/10.2139/ssrn.3774110" @default.
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