Competition and privacy in online markets: Evidence from the mobile app industry


Kesler, Reinhold ; Kummer, Michael E. ; Schulte, Patrick


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URL: https://madoc.bib.uni-mannheim.de/54510
URN: urn:nbn:de:bsz:180-madoc-545102
Document Type: Working paper
Year of publication: 2019
The title of a journal, publication series: ZEW Discussion Papers
Volume: 19-064
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L17 , D4 , D85 , D29,
Keywords (English): Competition , market power , privacy , user data , apps
Abstract: Policy makers are increasingly concerned about the combination of market power and massive data collection in digital markets. This concern is fueled by the theoretical prediction that more market power causes firms to collect ever more data from their users. We investigate the relationship between market power and data collection empirically. We analyze data about more than 1.5 million mobile applications in several thousand submarkets of Google’s Play Store. We observe these data for over two years and combine information on an app’s data collection with information about its competitive environment. Our analysis highlights a robust positive relationship between market power and data collection. We find that more data are being collected in concentrated markets, and apps with higher market shares collect more data. This pattern robustly emerges across a series of cross-sectional and panel regressions as well as a series of specifications that exploit exogenous variation.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Kesler, Reinhold ; Kummer, Michael E. ; Schulte, Patrick (2019) Competition and privacy in online markets: Evidence from the mobile app industry. Open Access ZEW Discussion Papers Mannheim 19-064 [Working paper]
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