Privacy Paradox: When Does Hiding in Plain Sight Work?
83 Pages Posted: 1 Jun 2021
Date Written: May 28, 2021
A hider aims to prevent a seeker from learning compromising information about herself. Before learning whether her information is compromising, the hider publicly commits to the level of protection that she privately deploys on compromising information; she relies on exogenous default protection for non-compromising information. When perfect protection is not feasible, the hider optimally chooses protection that is weaker than the default, thus hiding in plain sight and behaving as if she does not value privacy. Nevertheless, the hider benefits from strong default privacy protection, which warrants stronger privacy protection laws. We extended the model to multiple seekers.
Keywords: privacy, Poisson process, strategic experimentation, private learning, privacy paradox
JEL Classification: C73, D82, D83
Suggested Citation: Suggested Citation