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Contracting Around Privacy : the (Behavioral) Law and Economics of Consent and Big Data
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  • HERMSTRÜWER SA-JIPI
Henkilönnimi
  • Hermstrüwer, Yoan.
Nimeke- ja vastuullisuusmerkintö
  • Contracting Around Privacy : the (Behavioral) Law and Economics of Consent and Big Data
Julkaistu
  • 2017.
Ulkoasutiedot
  • 9-26.
Sarjamerkintö ei-lisäkirjausmuodossa
  • Journal of Intellectual Property, Information Technology and Electronic Commerce Law, ISSN 2190-3387 ; 8 (1)
Huomautus sisällöstä, tiivistelmä tms.
  • Abstract European privacy law rests on the implicit assumption that consent to the processing of personal data and the analysis of Big Data is a purely individual choice. Accordingly, privacy lawyers mainly focus on how to empower users to make free and informed choices, for instance through debiasing and nudging. However, a game theoretical analysis suggests that strategic considerations may be a driving force of consent under certain conditions. In environments relying on the use of Big Data, consent is likely to impose negative privacy externalities on other users and constrain their freedom of choice. By contrast, a behavioral economic analysis suggests that users are subject to bounded rationality and bounded willpower. While nudges, like default options, can enable users to make protective privacy choices in some cases, correcting cognitive deficits might facilitate market failures and accelerate the erosion of privacy in other cases. This counterintuitive conclusion shows that legal rules on consent and privacy contracts should be grounded on an assumption of ‘mixed rationalities’, i.e. on insights from both standard economics and behavioral economics. Hence, a sharper distinction between ‘paternalistic nudging’ and ‘non-paternalistic soft regulation’ to counter market failures is warranted.
Asiasana - Kontrolloimaton
Elektronisen aineiston sijainti ja käyttö (URI)
  • https://www.jipitec.eu/issues/jipitec-8-1-2017/4529/JIPITEC_8_1_2017_Hermstruewer.pdf Linkki verkkoaineistoon 
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*520  $aAbstract European privacy law rests on the implicit assumption that consent to the processing of personal data and the analysis of Big Data is a purely individual choice. Accordingly, privacy lawyers mainly focus on how to empower users to make free and informed choices, for instance through debiasing and nudging. However, a game theoretical analysis suggests that strategic considerations may be a driving force of consent under certain conditions. In environments relying on the use of Big Data, consent is likely to impose negative privacy externalities on other users and constrain their freedom of choice. By contrast, a behavioral economic analysis suggests that users are subject to bounded rationality and bounded willpower. While nudges, like default options, can enable users to make protective privacy choices in some cases, correcting cognitive deficits might facilitate market failures and accelerate the erosion of privacy in other cases. This counterintuitive conclusion shows that legal rules on consent and privacy contracts should be grounded on an assumption of ‘mixed rationalities’, i.e. on insights from both standard economics and behavioral economics. Hence, a sharper distinction between ‘paternalistic nudging’ and ‘non-paternalistic soft regulation’ to counter market failures is warranted.
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