Privacy Enhancing Technologies (PETs) and Investment Strategies for a Data Market

Abstract This paper analyses cases where data collectors adopt privacy enhancing technologies (PETs) for a data market, and investigates investment strategies for privacy protection technologies. This paper shows the firm has an incentive to invest in privacy enhancing technologies if consumers feel there is a psychological privacy cost. This paper also discusses firm's investment strategies on privacy, and shows that a firm will invest more on privacy protection as the influence of privacy awareness groups and privacy costs increase, and a firm will not invest in privacy protection when privacy breach probability is deemed to be low.