1.1 Economics Theories of Privacy Policies
The FTC started with a set of principles, almost akin to a framework of rights, andencouraged companies to protect these rights by adopting privacy policies. Economistsalso see utility in privacy policies but from an entirely different basis.Advertising economics looks at ways to turn a commodity (e.g., water) into a bundle ofmarketable attributes (e.g., from mountain springs). There are three types of attributes.
are things readily evaluated in advance, for example color.
are only evaluated after purchase or use, for example the claims of a hair care product.