Mohan, Goonj2025-01-022025-01-022024https://hdl.handle.net/2445/217265This paper studies regulation of a social media platform (SMP). I consider a user network with data externalities and an SMP that earns revenue from data-based personalized advertising. The SMP offers a price for user data and users simultaneously accept or reject the offer. Under a microfounded model I show that sharing moderate amount of user data maximizes user welfare. However, externalities reduce price for data and all data is shared in equilibrium. A strict consent policy like GDPR overcorrects this imbalance, burdens users with complete data-control and decreases user welfare. Data minimization moderately shifts data-control to users and increases user welfare.32 p.application/pdfengcc-by-nc-nd, (c) Mohan, 2024http://creativecommons.org/licenses/by-nc-nd/3.0/es/Processament de dadesAnàlisi de dadesXarxes socialsImage processingData analysisSocial networksinfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccess