An analysis of dynamic game strategy of privacy protection in personalisation
by Hong-Wei Liu; Li Chen; Hui Zhu; Zhihui Liu
International Journal of Services Technology and Management (IJSTM), Vol. 22, No. 1/2, 2016

Abstract: E-business enterprises provide personalisation services for customers based on their privacy information. However, customers benefit from personalisation while suffering from privacy loss. The tradeoff between consumers-benefit and corporate earnings are explored when an incumbent adopts privacy protection in a perfect monopoly market. It also found that when the potential entrant entered into the market, the incumbent that adopted privacy protection can maintain a greater market share than one not adopted. Lastly, we extended this paper further and found that a new enterprise entering a market with privacy protection would lose more profit because of the large cost of adopting privacy protection. This means the privacy protection that the incumbent adopted creates a barrier to new entrants.

Online publication date: Tue, 12-Jul-2016

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