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The privacy paradox: a challenge to decision theory?

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Abstract

In the present research we propose a methodology—to our knowledge, the first attempt in this sense—that considers information asymmetries when the degree of privacy concerning individuals is detected. Such filtering (“privacy concerns” degree as a function of “data awareness” level) allows to highlight the individuals’ desired level of privacy—and related privacy concerns—analyzing whether individuals’ data disclosure decisions are taken consciously or as the result of a “blind” (unaware) choice, considering data gathering practices—related level of consciousness. Previous works may have been biased due to the lack of such observation. Our measurement has been conducted taking into account the individuals’ awareness with respect to data collection techniques performed by mobile applications in Italy. As a matter of fact, if individuals’ privacy preferences among consumers are not distributed in a uniform way, this results in socially regressive outcomes.

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Notes

  1. Such results are in line with previous worldwide survey: see, for example, Rainie et al., 2013 – Pew Institute research – for US.

  2. With reference to gender and age, we took into consideration 14 classes. Two classes with respect to sex (male and female) for the following age groups: 14–17; 18–24; 25–34; 35–44; 45–54; 55–64; 65–74.

  3. Geographical macro-areas: North-west; North-east; Center; South; Islands.

  4. Areas of residence are classified on the basis of their population size: up to 5,000 inhabitants; from 5,001 to 10,000 inhabitants; from 10,001 to 30,000 inhabitants; from 30,001 to 100,000 inhabitants; from 100,001 to 250,000 inhabitants more than 250,000 inhabitants.

  5. “Heuristic is a simple procedure that helps find adequate, though often imperfect, answers to difficult questions” (Kahneman 2011, pg. 98). In this sense, we control if the individual makes use of technical heuristics in order to face difficult technological questions.

  6. «According to the theory of contextual integrity protecting privacy means ensuring that personal information flows appropriately; it does not mean that no information flows, or that information flows only if the information subject allows. Whether flow is appropriate depends on whether it conforms to legitimate, contextual informational norms. These norms prescribe information flows in terms of three parameters—actors (sender, subject, recipient), information types, and transmission principles. They are shaped by entrenched informational practices and contextual ontologies and informed by contextual goals and purposes. This means that when confronted with information flows, we judge them as respecting or violating privacy according to whether— in the first approximation—they conform to expectations of flow within a given context. When this is the case, we can say that contextual integrity has been preserved» (Martin & Nissenbaum, 2016, p. 190).

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Correspondence to Jacopo Arpetti or Marco Delmastro.

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The authors thank Otello Ardovino, Helen Nissenbaum and Francesco Vatalaro for useful comments on an earlier version of the paper. The usual disclaimer applies. The views expressed herein by Marco Delmastro are the sole responsibility of the author and cannot be interpreted as reflecting those of the Autorità per le Garanzie nelle Comunicazioni.

Appendix

Appendix

See Tables 2, 3 and 4.

Table 2 Evidence on privacy concern
Table 3 Descriptive statistics
Table 4 Results of probit models with selection (two-stage)

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Arpetti, J., Delmastro, M. The privacy paradox: a challenge to decision theory?. J. Ind. Bus. Econ. 48, 505–525 (2021). https://doi.org/10.1007/s40812-021-00192-z

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  • DOI: https://doi.org/10.1007/s40812-021-00192-z

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