The Differential Effects of New Privacy Protections on Publisher and Advertiser Profitability
Stuart School of Business research presentation by: Assistant Professor of Economics Priyanka Sharma, Associate Professor of Economics Liad Wagman, and Yidan Sun, Stuart Ph.D. student
The Differential Effects of New Privacy Protections on Publisher and Advertiser Profitability
- Assistant Professor of Economics Priyanka Sharma
- Associate Professor of Economics Liad Wagman
- Yidan Sun, Stuart Ph.D. student
Abstract:
We model an asymmetric ad-network duopoly with heterogeneous publishers and advertisers to assess the effects of data and tracking restrictions on profits. Publishers and advertisers vary in their sizes and preferences towards the two ad networks, and networks differ in the revenues they can deliver to publishers and advertisers. We show that new restrictions that hamper networks’ ability to deliver revenues lead to the highest percentage profit declines for small publishers and advertisers, particularly those who contract with the lower-revenue ad network. We demonstrate that our findings are robust to regulations that differentially impact ad networks and other market settings.
The Friday Research Presentations series showcases ongoing academic research projects conducted by Stuart faculty and research presentations made by faculty at other leading business schools.
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