Abstract. Privacy presents many puzzles. In particular, why is it eroding, given the high value people assign to their privacy? This extended argues that there are strong incentives for decreasing privacy, rooted in the economic benefits of price discrimination. As a result, the privacy problem is unsolvable. The conflict between incentives to price discriminate and the public dislike of this practice will influence what security technologies are likely to succeed.
Andrew M. Odlyzko