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Home > Research and Studies > Bank of Japan Working Paper Series, Review Series, and Research Laboratory Series > Bank of Japan Working Paper Series 2021 > (Research Paper)The Economics of Privacy
August 6, 2021
This paper presents a survey of a field called the economics of privacy. Reflecting growing concerns worldwide about the handling of personal data on the Internet, the economics of privacy is developing rapidly, coinciding with recent efforts by privacy regulators to tighten regulations. The literature argues that it is difficult for market mechanisms to resolve problems such as how to determine the socially optimal level of privacy protection and how to avoid excessive privacy loss driven by negative data externalities. These insights should be useful for policymakers facing the question of how to deal with personal data issues and to ensure that people's privacy is protected.
We thank Yasutora Watanabe, Kazushige Kamiyama, Yutaka Soejima, Akio Okuno, Takeshi Yamada, Junichiro Hatogai, Masashi Hojo, Masashi Une, Kazutoshi Kan, Noriyuki Shiraki, and Hiroyuki Takano for useful comments. All remaining errors are ours. This paper does not necessarily reflect the views of the Bank of Japan.
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