A foundational new collection examining the mechanics of privacy in the digital age. The falling costs of collecting, storing, and processing data have allowed firms and governments to improve their products and services, but have also created databases with detailed individual-level data that raise privacy concerns. This volume summarizes the research on the economics of privacy and identifies open questions on the value of privacy, the roles of property rights and markets for privacy and data, the relationship between privacy and inequality, and the political economy of privacy regulation. Several themes emerge across the chapters. One is that it may not be possible to solve privacy concerns by creating a market for the right to privacy, even if property rights are well-defined and transaction costs are low. Another is that it is difficult to measure and value the benefits of privacy, particularly when individuals have an intrinsic preference for privacy. Most previous attempts at va
