Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
Building the customer-centric enterprise: data warehousing techniques for supporting customer relationship management
Making It Personal: How to Profit from Personalization without Invading Privacy
Making It Personal: How to Profit from Personalization without Invading Privacy
Internet Marketing: Integrating Online and Offline Strategies
Internet Marketing: Integrating Online and Offline Strategies
Individual Marketing with Imperfect Targetability
Marketing Science
An Empirical Examination of the Concern for Information Privacy Instrument
Information Systems Research
Consumer Addressability and Customized Pricing
Marketing Science
Privacy, economics, and price discrimination on the Internet
ICEC '03 Proceedings of the 5th international conference on Electronic commerce
Competitive One-to-One Promotions
Management Science
Product Customization and Price Competition on the Internet
Management Science
'I didn't buy it for myself' privacy and ecommerce personalization
Proceedings of the 2003 ACM workshop on Privacy in the electronic society
Dynamic Conversion Behavior at E-Commerce Sites
Management Science
Internet Users' Information Privacy Concerns (IUIPC): The Construct, the Scale, and a Causal Model
Information Systems Research
Information and Management
On Customized Goods, Standard Goods, and Competition
Marketing Science
An Extended Privacy Calculus Model for E-Commerce Transactions
Information Systems Research
Personalized Pricing and Quality Differentiation
Management Science
Customizing Promotions in Online Stores
Marketing Science
Conditioning Prices on Purchase History
Marketing Science
Customized Products: A Competitive Analysis
Marketing Science
Weighted order-dependent clustering and visualization of web navigation patterns
Decision Support Systems
Adoption of Internet-Based Product Customization and Pricing Strategies
Journal of Management Information Systems
Journal of Management Information Systems
Journal of Management Information Systems
The Role of Push-Pull Technology in Privacy Calculus: The Case of Location-Based Services
Journal of Management Information Systems
A model of consumers' perceptions of the invasion of information privacy
Information and Management
Explaining customers' willingness to use mobile network-based pay-as-you-drive insurances
International Journal of Mobile Communications
Privacy intrusiveness and web audiences: Empirical evidence
Telecommunications Policy
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Advances in information technology and e-commerce enable firms to make personalized offers to individual consumers based on information about the consumers. However, the collection and use of private information have caused serious concerns about privacy invasion by consumers, creating a personalization ᾢ privacy tradeoff. The key approach to address privacy concerns is via the protection of privacy through the implementation of fair information practices, a set of standards governing the collection and use of personal information. In this paper, we take a game-theoretic approach to explore the motivation of firms for privacy protection and its impact on competition and social welfare in the context of product and price personalization. We find that privacy protection can work as a competition-mitigating mechanism by generating asymmetry in the consumer segments to which firms offer personalization, enhancing the profit extraction abilities of the firms. In equilibrium, both symmetric and asymmetric choices of privacy protection by the firms can result, depending on the size of the personalization scope and the investment cost of protection. Further, as consumers become more concerned about their privacy, it is more likely that all firms adopt privacy protection. In the perspective of welfare, we show that autonomous choices of privacy protection by personalizing firms can improve social welfare at the expense of consumer welfare. We further find that regulation enforcing the implementation of fair information practices can be efficient from the social welfare perspective mainly by limiting the incentives of the firms to exploit the competition-mitigation effect.