The Strange Case of Privacy in Equilibrium Models

Explore a thought-provoking lecture on the unexpected effects of privacy technologies in targeted advertising. Delve into a simple economic model that examines how differential privacy impacts consumer and advertiser behaviors. Discover counter-intuitive findings that challenge conventional wisdom about privacy's role in equilibrium scenarios. Learn how increasing privacy levels can paradoxically lead to more information disclosure, reduced consumer utility, and increased advertiser profits. Investigate the non-monotonic and potentially discontinuous relationships between privacy levels and various economic outcomes. Gain insights from this collaborative research that highlights the complex interplay between privacy, information, and economic incentives in digital advertising ecosystems.