Post by arfankj4 on Mar 4, 2024 21:58:28 GMT -5
In contrast Microsoft charges a subscription price for Office but does not disclose consumer information for advertising purposes. Microsoft s recent Scroogled campaign emphasized the difference as follows Google goes through every Gmail that s sent or received looking for keywords so they can target Gmail users with paid ads. And there s no way to opt out of this invasion of your privacy. Outlook is different—we don t go through your email to sell ads.
At a deeper level firms are essentially competing for consumer information through different strategies. When you look at this problem through the lens of our model you see that both firms are carefully adjusting disclosure levels and prices so as to remain attractive to consumers and accumulate as much personal information as possible. Both firms monetize consumer information Google exploits it to generate disclosure revenues and Poland Mobile Number List Microsoft exploits it to personalize its service and sustain high prices. Of course this affects which consumers they attract. with low valuations those less willing to pay to avoid disclosure. Microsoft attracts high valuation consumers. Which of these two strategies yields highest profits depends on how consumer valuations compare to disclosure revenues that is on how consumer willingness to pay compares to that of advertisers and on how firms interact in the marketplace.
In the paper we provide a detailed characterization of the performance of both strategies. Q Your work assumes there is transparency in the market with regard to the sharing of consumer information. Why is this key to a consumer s decision about which firms to use A Yes this is a key ingredient of our analysis. As is the case in any market consumers need to be informed about products to make the right decisions. In the context of consumer privacy consumers need to be informed about the disclosure practices of firms in order to choose which services to patronize and how much information to provide them with.
At a deeper level firms are essentially competing for consumer information through different strategies. When you look at this problem through the lens of our model you see that both firms are carefully adjusting disclosure levels and prices so as to remain attractive to consumers and accumulate as much personal information as possible. Both firms monetize consumer information Google exploits it to generate disclosure revenues and Poland Mobile Number List Microsoft exploits it to personalize its service and sustain high prices. Of course this affects which consumers they attract. with low valuations those less willing to pay to avoid disclosure. Microsoft attracts high valuation consumers. Which of these two strategies yields highest profits depends on how consumer valuations compare to disclosure revenues that is on how consumer willingness to pay compares to that of advertisers and on how firms interact in the marketplace.
In the paper we provide a detailed characterization of the performance of both strategies. Q Your work assumes there is transparency in the market with regard to the sharing of consumer information. Why is this key to a consumer s decision about which firms to use A Yes this is a key ingredient of our analysis. As is the case in any market consumers need to be informed about products to make the right decisions. In the context of consumer privacy consumers need to be informed about the disclosure practices of firms in order to choose which services to patronize and how much information to provide them with.