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Regulating Privacy Online: An Economic Evaluation of the GDPR

  • Samuel G. Goldberg
  • Garrett A. Johnson
  • Scott K. Shriver
American Economic Journal: Economic Policy
vol. 16, no. 1, February 2024
(pp. 325-58)
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Abstract

Modern websites rely on personal data to design better content and to market themselves. The European Union's General Data Protection Regulation (GDPR) was intended to make access to such personal data more difficult, with the goal of protecting user privacy. We examine the GDPR's impact on website page views and revenue for 1,084 online firms using data from Adobe's website analytics platform. We find a reduction of 12 percent in both EU user website page views and website revenue recorded by the platform after the GDPR's enforcement deadline. We decompose these GDPR effects into changes in real outcomes and changes to data recording, respectively.

Citation

Goldberg, Samuel G., Garrett A. Johnson, and Scott K. Shriver. 2024. "Regulating Privacy Online: An Economic Evaluation of the GDPR." American Economic Journal: Economic Policy, 16 (1): 325-58. DOI: 10.1257/pol.20210309

Additional Materials

JEL Classification

  • D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
  • K24 Cyber Law
  • L51 Economics of Regulation
  • L86 Information and Internet Services; Computer Software
  • L88 Industry Studies: Services: Government Policy
  • M31 Marketing
  • M37 Advertising
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