Daughety, Andrew F.; Reinganum, Jennifer F. - In: American Economic Journal: Microeconomics 2 (2010) 2, pp. 191-221
We model privacy as an agent's choice of action being unobservable to others. An agent derives utility from his action, the aggregate of agents' actions, and other agents' perceptions of his type. If his action is unobservable, he takes his full-information optimal action and is pooled with...