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Unwillingness to pay for privacy: A field experiment

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Author Info

  • Beresford, Alastair R.
  • Kübler, Dorothea
  • Preibusch, Sören

Abstract

We measure willingness to pay for privacy in a field experiment. Participants bought at most one DVD from one of two competing online stores. One store consistently required more sensitive personal data than the other, but otherwise the stores were identical. In one treatment, DVDs were one Euro cheaper at the store requesting more personal information, and almost all buyers chose the cheaper store. Surprisingly, in the second treatment when prices were identical, participants bought from both shops equally often.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176512002182
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 117 (2012)
Issue (Month): 1 ()
Pages: 25-27

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Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:25-27

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Privacy; Willingness to pay; Field experiment;

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References

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  1. Posner, Richard A, 1981. "The Economics of Privacy," American Economic Review, American Economic Association, vol. 71(2), pages 405-09, May.
  2. Benjamin Hermalin & Michael Katz, 2006. "Privacy, property rights and efficiency: The economics of privacy as secrecy," Quantitative Marketing and Economics, Springer, vol. 4(3), pages 209-239, September.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Privacy economics: evidence from the field
    by Sören Preibusch in Light Blue Touchpaper on 2012-03-12 12:57:48
  2. Contradictions in privacy
    by Chris Sampson in Chris Sampson on 2013-10-23 05:30:22
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