Skip to main content

How to Explore Consumers’ Privacy Choices with Behavioral Economics

  • Chapter
  • First Online:
Privacy in a Digital, Networked World

Part of the book series: Computer Communications and Networks ((CCN))

Abstract

This chapter aims to equip researchers, practitioners, and policymakers with the tools and the evidence to understand consumers’ privacy behaviors. It explains why experiments are needed and how to design and deploy them.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 44.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 59.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 59.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. The Boston Consulting Group (2012) The digital manifesto. How companies and countries can win in the digital economy

    Google Scholar 

  2. The Boston Consulting Group (2010) The connected kingdom. How the internet is transforming the U.K. Economy

    Google Scholar 

  3. Office for National Statistics (2014) Retail Sales, May 2014

    Google Scholar 

  4. Nadella S (2014) A data culture for everyone. http://blogs.technet.com/b/microsoft_blog/archive/2014/04/15/a-data-culture-for-everyone.aspx

  5. Kuneva M (2009) Keynote Speech: roundtable on online data collection, targeting and profiling. In: European Commission

    Google Scholar 

  6. Personalization consortium, personalization & privacy survey, 2000, 2005, via Internet Archive, 2014

    Google Scholar 

  7. Kobsa A (2007) Privacy-enhanced web personalization. In: Brusilovsky P, Kobsa A, Nejdl W (eds) Privacy-enhanced web personalization, vol 4321. Springer, Berlin, pp 628–670

    Google Scholar 

  8. Hess T, Schreiner M (2012) Ökonomie der Privatsphäre. Datenschutz und Datensicherheit—DuD 36:105–109

    Article  Google Scholar 

  9. Consumer Commerce Barometer, February 2012. http://www.consumerbarometer.eu/chartlink?id=T1332485008

  10. Hamilton Consultants, Inc. (2009) Economic value of the advertising-supported internet ecosystem. IAB

    Google Scholar 

  11. World Economic Forum (2011) Personal data: the emergence of a new asset class

    Google Scholar 

  12. European Data Protection Supervisor (2014) Privacy and competitiveness in the age of big data. European Data Protection Supervisor

    Google Scholar 

  13. European Commission/TNS Opinion & Social (2011) Attitudes on data protection and electronic identity in the European Union

    Google Scholar 

  14. Preibusch S (2015) Privacy behaviours after Snowden: the brief impact of exposed state surveillance. Commun ACM 58(5):48–55

    Article  Google Scholar 

  15. Anderson R, Moore T (2006) The economics of information security. Science 314(5799):610–613

    Article  Google Scholar 

  16. Heller C (2011) Post-Privacy. C.H. Beck, Prima leben ohne Privatsphäre

    Google Scholar 

  17. Feijóo C, Gómez-Barroso JL, Voigt P (2014) Exploring the economic value of personal information from firms’ financial statements. Int J Inf Manage 34(2):248–256

    Article  Google Scholar 

  18. Novotny A, Spiekermann S (2013) Personal information markets and privacy: a new model to solve the controversy. In: 11 Internationale Tagung Wirtschaftsinformatik, Leipzig

    Google Scholar 

  19. Department for Business, Innovation & Skills, The midata vision of consumer empowerment

    Google Scholar 

  20. The Gallup Organization (2008) Data protection in the European Union. Citizens’ perceptions (analytical report). In: European Commission

    Google Scholar 

  21. Acquisti A, Gross R (2006) Imagined communities: awareness, information sharing, and privacy on the Facebook. In: Privacy enhancing technologies

    Google Scholar 

  22. Barnes SB (2006) A privacy paradox: social networking in the United States. First Monday 11(9)

    Google Scholar 

  23. Spiekermann S, Grossklags J, Berendt B (2001) E-privacy in 2nd generation e-commerce: privacy preferences versus actual behavior. In: Proceedings of the 3rd ACM conference on electronic commerce, EC ’01, New York, NY, USA

    Google Scholar 

  24. Norberg P, Horne D, Horne D (2007) The privacy paradox: personal information disclosure intentions versus behaviors. J Consum Affairs 41(1):100–126

    Article  Google Scholar 

  25. Grossklags J, Acquisti A (2007) When 25 cents is too much: an experiment on willingness-to-sell and willingness-to-protect personal information. In: Workshop on the economics of information security (WEIS)

    Google Scholar 

  26. Preibusch S (2013) The value of privacy in Web search. In: Workshop on the economics of information security (WEIS)

    Google Scholar 

  27. Rivenbark DR (2010) Experimentally elicited beliefs explain privacy behavior. University of Central Florida—College of Business Administration

    Google Scholar 

  28. Microsoft, Trustworthy computing—data privacy day. http://www.microsoft.com/en-us/twc/privacy/data-privacy-day.aspx

  29. Connelly K, Khalil A, Liu Y (2007) Do I do what I say?: Observed versus stated privacy preferences. In: Proceedings of the 11th IFIP TC 13 international conference on human-computer interaction, INTERACT’07

    Google Scholar 

  30. Preibusch S, Krol K, Beresford AR (2012) The privacy economics of voluntary over-disclosure in Web forms. In: Workshop on the economics of information security (WEIS)

    Google Scholar 

  31. Preibusch S (2013) Guide to measuring privacy concern: Review of survey and observational instruments. Int J Hum Comput Stud 71(12):1133–1143

    Article  Google Scholar 

  32. Wathieu L, Friedman A (2005) An empirical approach to understanding privacy valuation. In: Workshop on the economics of information security (WEIS)

    Google Scholar 

  33. Ward S, Bridges K, Chitty B (2005) Do incentives matter? an examination of online privacy concerns and willingness to provide personal and financial information. J Mark Commun 11(1):21–40

    Article  Google Scholar 

  34. Castañeda JA, Montoro F (2007) The effect of Internet general privacy concern on customer behavior. Electr Comm Res 7:117–141

    Article  Google Scholar 

  35. Baumer DL, Poindexter JC, Earp JB (2006) An experimental economics approach toward quantifying online privacy choices. Inf Syst Front 8:363–374

    Google Scholar 

  36. Hann I-H, Hui K-L, Lee S-YT, Png IP (2007) Analyzing online information privacy concerns: An information processing theory approach. In: 40th Annual Hawaii international conference on system sciences (HICSS 2007)

    Google Scholar 

  37. Hann I-H, Hui K-L, Lee S-YT, Png IP (2002) Online information privacy: measuring the cost-benefit trade-off. In: 23rd international conference on information systems (ICIS)

    Google Scholar 

  38. Jensen C, Potts C, Jensen C (2005) Privacy practices of internet users: self-reports versus observed behavior. Int J Hum Comput Stud 63(1–2):203–227

    Article  Google Scholar 

  39. Huberman B, Adar E, Fine L (2005) Valuating privacy. IEEE Secur Priv 3(5):22–25

    Article  Google Scholar 

  40. Acquisti A, John LK, Loewenstein G (2013) What is privacy worth? J Legal Stud 42(2):249–274

    Article  Google Scholar 

  41. Cvrcek D, Kumpost M, Matyas V, Danezis G (2006) A study on the value of location privacy. In: Proceedings of the 5th ACM workshop on privacy in electronic society, WPES ’06, New York, NY, USA

    Google Scholar 

  42. Kai-Lung H, Hai TH, Tom LS-Y (2007) The value of privacy assurance: an exploratory field experiment. MIS Q 31(1):19–33

    Google Scholar 

  43. Carrascal J, Riederer C, Erramilli V, Cherubini M, de Oliveira R (2011) Your browsing behavior for a big mac: economics of personal information online. In: Proceedings of the 22nd international conference on World Wide Web

    Google Scholar 

  44. K-L Hui, Lee SYT, Teo HH (2007) The value of privacy assurance: an exploratory field experiment. MIS Q 31(1):19–33

    Google Scholar 

  45. White TB (2004) Consumer disclosure and disclosure avoidance: a motivational framework. J Consum Psychol 14(1/2):41–51

    Article  Google Scholar 

  46. Kobsa A, Teltzrow M (2005) Impacts of contextualized communication of privacy practices and personalization benefits on purchase behavior and perceived quality of recommendation

    Google Scholar 

  47. Ellison NB, Steinfield C, Lampe C (2007) The benefits of Facebook “friends:” social capital and college students’ use of online social network sites. J Comput-Mediat Commun 12(4):1143–1168

    Article  Google Scholar 

  48. Taddicken M, Jers C (2011) “The uses of privacy online: trading a loss of privacy for social web gratifications? In: Privacy Online. Springer, Berlin, pp 143–156

    Google Scholar 

  49. Tsai J, Egelman S, Cranor L, Acquisti A (2009) The impact of privacy indicators on search engine browsing patterns. In: Symposium on usable privacy and security (SOUPS), New York, NY, USA

    Google Scholar 

  50. Preibusch S, Kübler D, Beresford AR (2013) Price versus privacy: an experiment into the competitive advantage of collecting less personal information. Electron Comm Res 13(4):423–455

    Article  Google Scholar 

  51. Jentzsch N, Preibusch S, Harasser A (2012) Study on monetising privacy. An economic model for pricing personal information. ENISA

    Google Scholar 

  52. Beresford A, Kübler D, Preibusch S (2012) Unwillingness to pay for privacy. Econ Lett 117(1):25–27

    Article  Google Scholar 

  53. Gideon J, Cranor L, Egelman S, Acquisti A (2006) Power strips, prophylactics, and privacy, oh my!. In: Symposium on usable privacy and security (SOUPS), New York, NY

    Google Scholar 

  54. Jentzsch N, Giannetti C (2011) Disclosure of personal information under risk of privacy shocks. SSRN

    Google Scholar 

  55. Preibusch S (2008) Economic aspects of privacy negotiations., Berlin, Germany: Technische Universität Berlin/Fachgebiet Volkswirtschaftslehre [Technical University Berlin/Institute of Economics]

    Google Scholar 

  56. Eurostat (2006/2011) Percentage of persons who have attended the cinema at least once in the last 12 months by gender and age group

    Google Scholar 

  57. van Eimeren B, Frees B (2012) 76 Prozent der Deutschen online—neue Nutzungssituationen durch mobile Endgeräte. MEDIA PERSPEKTIVEN, pp 362–379

    Google Scholar 

  58. Plott CR, Zeiler K (2005) The willingness to pay-willingness to accept gap, the “Endowment Effect”, subject misconceptions, and experimental procedures for eliciting valuations. Am Econ Rev 95(3):530–545

    Article  Google Scholar 

  59. Hertwig R, Ortmann A (2001) Experimental practices in economics: a methodological challenge for psychologists? Behav Brain Sci 24(3):383–403

    Google Scholar 

  60. Exadaktylos F, Espín AM, Brañas-Garza P (2013) Experimental subjects are not different. Sci Rep 3(1213)

    Google Scholar 

  61. Horton JJ, Rand DG, Zeckhauser RJ (2011) The online laboratory: conducting experiments in a real labor market. Exp Econ 14(3):399–425

    Article  Google Scholar 

  62. Jamison J, Karlan D, Schechter L (2008) To deceive or not to deceive: the effect of deception on behavior in future laboratory experiments. J Econ Behav Organ 68(3–4):477–488

    Article  Google Scholar 

  63. Henrich J, Heine SJ, Norenzayan A (2010) The weirdest people in the world? Behav Brain Sci 33(2–3):61–83

    Article  Google Scholar 

  64. Mason W, Suri S (2012) Conducting behavioral research on Amazon’s mechanical Turk. Behav Res Methods 44(1):1–23

    Article  Google Scholar 

  65. Amazon.com, Inc. (2013) FAQs | Help | Requester | Amazon Mechanical Turk. https://requester.mturk.com/help/faq#restrictions_use_mturk

  66. Executive Office of the President (2014) Big data: seizing opportunities, preserving values

    Google Scholar 

  67. Crawford K, Schultz J (2014) Big data and due process: toward a framework to redress predictive privacy harms. Boston Coll Law Rev 55(93)

    Google Scholar 

  68. Preibusch S (2006) Implementing privacy negotiations in E-commerce. In: Frontiers of WWW research and development—APWeb 2006, Berlin Heidelberg

    Google Scholar 

Download references

Acknowldgements

Kat Krol (University College London) provided helpful comments on earlier versions of the chapter.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sören Preibusch .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Preibusch, S. (2015). How to Explore Consumers’ Privacy Choices with Behavioral Economics. In: Zeadally, S., Badra, M. (eds) Privacy in a Digital, Networked World. Computer Communications and Networks. Springer, Cham. https://doi.org/10.1007/978-3-319-08470-1_14

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-08470-1_14

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-08469-5

  • Online ISBN: 978-3-319-08470-1

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics