  Central to privacy concerns is that firms may use consumer data to price
discriminate. A common policy response is that consumers should be given
control over which firms access their data and how. Since firms learn about a
consumer's preferences based on the data seen and the consumer's disclosure
choices, the equilibrium implications of consumer control are unclear. We study
whether such measures improve consumer welfare in monopolistic and competitive
markets. We find that consumer control can improve consumer welfare relative to
both perfect price discrimination and no personalized pricing. First, consumers
can use disclosure to amplify competitive forces. Second, consumers can
disclose information to induce even a monopolist to lower prices. Whether
consumer control improves welfare depends on the disclosure technology and
market competitiveness. Simple disclosure technologies suffice in competitive
markets. When facing a monopolist, a consumer needs partial disclosure
possibilities to obtain any welfare gains.
