Reputation Nation: Law in an Era of Ubiquitous Personal Information

Modern technology has made two sorts of previously private information widely available in the past decade: Information about individual's past actions and activities, often contained in government files, consumer credit histories, and advertising profiles; and Feedback information about individual's reputations and preferences, often contained in social networking sites' pages, eBay feedback scores or Slashdot karma scores. In the coming decade, wearable computing devices and advances in network technologies have the potential to transform completely the way that strangers interact with each other and consumers interact with service providers. This paper is the first to ask systematically how the law should respond to the newly widespread availability of this information. The paper develops a hopeful hypothesis, which is that the widespread availability of personal history and reputation information will reduce individuals' reliance on easily observable proxies like race, gender, and age, in deciding with whom to socialize or do business. The government thus has an unrecognized anti-discrimination tool at its disposal. For example, in addition to imposing liability on landlords who discriminate on the basis of race, the state can provide landlords with personalized information about a prospective tenant's attributes that allows the landlord to assign more weight to those attributes and less weight to the tenant's race. The paper then explores the application of this insight to varied antidiscrimination challenges in employment law, jury selection, health law, and insurance regulation. It then extends the discussion to examine how the widespread availability of personal information might improve immigration policy and consumer protection law. The paper's next part examines the variables that will determine whether the optimistic story plays out, and whether greater information availability might undermine welfarist and distributive goals. It develops a typology of curtains and search lights, respective strategies designed to obscure individual attributes that are otherwise visible or render observable attributes that would otherwise be obscure, and explains why search light strategies might be particularly well suited to certain contexts. The paper concludes with a discussion of the normative case for the government to supplement traditional antidiscrimination laws with information-based antidiscrimination strategies, focusing on the pathologies that result when privacy protections or other obscurity-inducing measures are used for distributive purposes and the social meaning of strategies that try to reduce discrimination by providing decisionmakers with more information about job seekers, apartment renters, jurors, or patients.

[1]  Christopher R. Berry,et al.  Fiscal Consequences of Electoral Institutions , 2007, The Journal of Law and Economics.

[2]  Kenneth W. Dam,et al.  Legal Institutions, Legal Origins, and Governance , 2006 .

[3]  Lior Jacob Strahilevitz,et al.  'Don't Try this at Home': Posner as Political Economist , 2007 .

[4]  Ariel Porat,et al.  The Unconventional Uses of Transaction Costs , 2006 .

[5]  J. Nash,et al.  An Empirical Investigation into Appellate Structure and the Perceived Quality of Appellate Review , 2007 .

[6]  C. Sunstein,et al.  Willingness to Pay Versus Welfare , 2007 .

[7]  Jens Ludwig,et al.  Reefer Madness: Broken Windows Policing and Misdemeanor Marijuana Arrests in New York City, 1989-2000 , 2007 .

[8]  Cass R. Sunstein,et al.  Montreal vs. Kyoto: A Tale of Two Protocols , 2006 .

[9]  C. Sunstein,et al.  Cost-Benefit Analysis Without Analyzing Costs of Benefits: Reasonable Accommodation, Balancing, and Stigmatic Harms , 2007 .

[10]  Lior Jacob Strahilevitz,et al.  Wealth without Markets , 2006 .

[11]  Cass R. Sunstein,et al.  Causation in Tort: General Populations vs. Individual Cases , 2007 .

[12]  Stephen L. Ross,et al.  Uncovering Discrimination: A Comparison of the Methods Used by Scholars and Civil Rights Enforcement Officials , 2006 .

[13]  Eric A. Posner,et al.  Happiness Research and Cost-Benefit Analysis , 2008 .

[14]  Adam B. Cox,et al.  The Temporal Dimension of Voting Rights , 2006 .

[15]  Bernard E. Harcourt,et al.  A Reader's Companion to Against Prediction: A Reply to Ariela Gross, Yoram Margalioth, and Yoav Sapir on Economic Modeling, Selective Incapacitation, Governmentality, and Race , 2008, Law & Social Inquiry.

[16]  William W. Fisher 1 WHEN SHOULD WE PERMIT DIFFERENTIAL PRICING OF INFORMATION ? , 2007 .

[17]  Adrian Vermeule,et al.  The Credible Executive , 2006 .

[18]  David A. Weisbach,et al.  A Welfarist Approach to Disabilities , 2007 .

[19]  Steven Raphael,et al.  Perceived Criminality, Criminal Background Checks, and the Racial Hiring Practices of Employers* , 2006, The Journal of Law and Economics.

[20]  M. Henderson,et al.  Paying CEOs in Bankruptcy: Executive Compensation when Agency Costs are Low , 2006 .

[21]  M. Todd Henderson,et al.  Deconstructing Duff & Phelps , 2007 .

[22]  Bernard E. Harcourt,et al.  Judge Richard Posner on Civil Liberties: Pragmatic Authoritarian Libertarian , 2007 .

[23]  D. Baird,et al.  The Prime Directive , 2006 .

[24]  Kyle D. Logue,et al.  Redistributing Optimally: Of Tax Rules, Legal Rules, and Insurance , 2002 .

[25]  D. Weisbach,et al.  The Irreducible Complexity of Firm-Level Income Taxes: Theory and Doctrine in Corporate Tax , 2007 .

[26]  Abraham L. Wickelgren,et al.  Controlling Avian Influenza in Chickens , 2007 .

[27]  E. Posner,et al.  Climate Change and International Human Rights Litigation: A Critical Appraisal , 2007 .

[28]  Randal C. Picker,et al.  Of Pirates and Puffy Shirts: A Comment on the Piracy Paradox: Innovation and Intellectual Property in Fashion Design , 2007 .

[29]  Michael B. Abramowicz,et al.  Prediction Markets for Corporate Governance , 2006 .

[30]  Ariel Porat,et al.  Liability Externalities and Mandatory Choices: Should Doctors Pay Less? , 2006 .

[31]  C. Sunstein,et al.  Second-Order Perfectionism , 2006 .

[32]  Bernard E. Harcourt,et al.  From the Asylum to the Prison: Rethinking the Incarceration Revolution. Part II: State Level Analysis , 2006 .

[33]  T. Miles,et al.  Judging the Voting Rights Act , 2007 .

[34]  Shawn Michael Delgado Do not try this at home , 2005 .

[35]  C. Sunstein,et al.  Availability Cascades and Risk Regulation , 1999 .

[36]  N. Powe,et al.  Effects of Patient Compliance, Parental Education and Race on Nephrologists' Recommendations for Kidney Transplantation in Children , 2003, American journal of transplantation : official journal of the American Society of Transplantation and the American Society of Transplant Surgeons.

[37]  Dennis Coates,et al.  Teaching Price Discrimination: Some Clarification , 1999 .

[38]  L. Strahilevitz How Changes in Property Regimes Influence Social Norms: Commodifying California's Carpool Lanes , 2000 .

[39]  David A. Weisbach,et al.  What Does Happiness Research Tell Us About Taxation? , 2008, The Journal of Legal Studies.

[40]  Prashanth U. Nyer An investigation into whether complaining can cause increased consumer satisfaction , 2000 .

[41]  Randal C. Picker,et al.  Pulling a Rabbi Out of His Hat: The Bankruptcy Magic of Dick Posner , 2007 .

[42]  Janice Nadler,et al.  Coordinating in the Shadow of the Law: Two Contextualized Tests of the Focal Point Theory of Legal Compliance , 2008 .

[43]  B. Harcourt,et al.  Embracing Chance: Post-Modern Meditations on Punishment , 2006 .

[44]  D. Weisbach,et al.  Consumption Taxation is Still Superior to Income Taxation , 2007 .

[45]  Jacob E. Gersen,et al.  Timing Rules and Legal Institutions , 2007 .

[46]  Cass R. Sunstein,et al.  If People Would Be Outraged by Their Rulings, Should Judges Care? , 2007 .

[47]  Jochen Wirtz,et al.  Consumer complaining to firms: the determinants of channel choice , 2004 .

[48]  Lawrence F. Katz,et al.  Wage Subsidies for the Disadvantaged , 1996 .

[49]  E. Posner,et al.  A Critique of the Odious Debt Doctrine , 2007 .

[50]  Cass R. Sunstein,et al.  Incompletely Theorized Agreements in Constitutional Law , 2007 .

[51]  C. Sunstein,et al.  The Real World of Arbitrariness Review , 2007 .

[52]  D. Weisbach,et al.  The Taxation of Carried Interests in Private Equity , 2007 .

[53]  Richard H. McAdams,et al.  Reforming Entrapment Doctrine in United States v. Hollingsworth , 2007 .

[54]  C. Sunstein,et al.  Due process traditionalism. , 2007, Michigan law review.

[55]  Randal C. Picker,et al.  Antitrust and Regulation , 2006 .

[56]  Cass R. Sunstein The Complex Climate Change Incentives of China and the United States , 2007 .

[57]  Adam B. Cox,et al.  Designing Redistricting Institutions , 2006 .

[58]  Randal C. Picker Review of Hovenkamp: 'The Antitrust Enterprise: Principle and Execution' , 2006 .

[59]  David L. Jones,et al.  Consumer Complaint Behavior Manifestations for Table Service Restaurants: Identifying Sociodemographic Characteristics, Personality, and Behavioral Factors , 2002 .

[60]  Randal C. Picker Who Should Regulate Entry into Iptv and Municipal Wireless? , 2006 .

[61]  C. Sunstein,et al.  Deliberating Groups versus Prediction Markets (or Hayek's Challenge to Habermas) , 2006, Episteme.

[62]  Eric A. Posner,et al.  The Second-Order Structure of Immigration Law , 2006 .

[63]  Eric A. Posner,et al.  The Case for For-Profit Charities , 2006 .

[64]  J. Bishop,et al.  Applying for entitlements: Employers and the targeted jobs tax credit , 1991 .

[65]  J. Pennebaker Telling Stories: The Health Benefits of Narrative , 2000, Literature and medicine.