Working Papers
Working Papers
Consumers’ Privacy Sensitivity in Digital Markets: Evidence from the Mobile App Industry
Abstract: I investigate the privacy sensitivity of consumers in the mobile app market, taking into account the benefits of sharing personal information. The findings indicate that users are more privacy sensitive than suggested by the literature. Additionally, the sensitivity to the collection of data related to identity is shown to increase over time, but with persistent heterogeneity across countries. In fact, French and German consumers exhibit greater privacy concerns than their US and Canadian counterparts. The heightened sensitivity to privacy raises questions about the need to enforce privacy regulations, especially in competitive markets where consumers can choose products that prioritize privacy over those that do not.
Consumer Data, Product Quality and Privacy Discrimination in Competitive Markets
Abstract: This paper studies the firms’ inability to set different data collection policies across countries on surpluses and privacy in the mobile app industry. By developing and estimating a structural dynamic game model, the findings reveal that US consumers are less privacy-sensitive than their European counterparts. Empirical evidences also suggest that the US market is more profitable for developers than the European market. As a result, when developers cannot adjust their data collection policies across countries, they tend to prioritize collecting consumer data, as the profit gains in the US outweigh the losses in Europe. Through counterfactual analysis, I demonstrate that a regulation enforcing privacy discrimination in data collection across countries would increase consumer surplus and privacy in European countries. However, this regulation would have the opposite effect in the US. This paper aims to inform policymakers about the implications of non-discriminatory data collection policies, particularly in markets with privacy-sensitive consumers.
Deliver Us from Crime? Gig Jobs, Labor Market Opportunities, and Offending [Ungated]
with Grazia Cecere (Institut Mines-Telecom), José De Sousa (Univsersité Paris Panthéon-Assas), Olivier Marie (Erasmus University Rotterdam) and Inès Picard (CREST)
Abstract: We study how the expansion of gig job opportunities affects local labor markets and crime in France. Food delivery platforms create flexible and low-barrier jobs that attract young and minority workers from disadvantaged areas, who have limited opportunities in the traditional labor market. Using staggered difference-in-differences, we show that platform entry substantially increases rider registrations and raises labor-market participation among male migrants. We also find sizable declines in violent offenses, petty theft, vandalism, and drug crimes, consistent with increased opportunity costs of crime and reduced unstructured time among high-risk individuals. Exploiting the legal minimum age of 18 for delivery work, an age-eligibility test shows that crime reductions are concentrated among those able to take up platform jobs. These results indicate that gig jobs can expand access to legal income for marginalized groups by reducing entry barriers, with associated declines in local crime.
Communication:
Pour l'Éco (magazine de Les Echos) [LinkedIn] [TikTok]
Reallocation of Carpooling Supply
with Xaver Lambin (ESSEC Business School)
Abstract: Many online platforms create value by intermediating different type of users. In the case of one-to-one matching, congestion may arise, causing matching inefficiencies. To alleviate these inefficiencies and increase the number of successful matches, platforms may employ algorithms that involve setting or recommending prices. They may also choose not to disclose certain products to certain consumers. In this paper, we argue that the strategic display of products can enhance efficiency, user surplus and profits in ways that price adjustments alone, even dynamic, cannot achieve. In particular, capacity-constrained goods should be selectively shown to picky consumers while being hidden from consumers with weaker preferences, sometimes even when the picky consumers have lower willingness to pay.
Formation of Social Interaction Preferences in the Sharing Economy
with Xaver Lambin (ESSEC Business School) and Pinar Yildirim (Wharton School)
Abstract: This paper examines the evolution of individual preferences regarding social interaction and diversity based on past interactions with others. By leveraging a unique dataset on carpooling, we take advantage of exogenous variations in the number of passengers, their characteristics, as well as exogenous variations in the distribution of individuals’ characteristics in the market to analyze individual preferences in future carpooling choices. The results are particularly relevant for understanding the formation of preferences and promoting public transportation.