Regulatory Strategies for Smart Senior Care: Balancing Privacy Protection and Industry Development

Abstract

Amid an aging population, smart pension services provide an innovative solution to the challenges of elderly care, but they also heighten the risk of privacy breaches among older adults. Balancing privacy protection with the growth of the smart pension service market has increasingly attracted the attention of both government and society. This paper develops an evolutionary game model of regulation, grounded in prospect theory and evolutionary game theory, to examine the dual objectives of privacy protection and industry development. Simulation results demonstrate the effects of key parameters on evolutionary outcomes. The findings indicate that: 1) government guidance during the initial and developmental stages is essential for the sustainable growth of smart senior care; 2) in the mature stage, reputation mechanisms become the primary drivers of market participants’ behavior; 3) moderate government penalties are effective in regulating privacy protection, whereas subsidies exert limited influence; and 4) enhancing value perception and adjusting risk attitudes among smart aging platforms and government agencies can improve governance outcomes.

Keywords

Smart aging platform / privacy protection / industry development / evolutionary game

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