IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v37y2013i10p1004-1014.html
   My bibliography  Save this article

Privacy intrusiveness and web audiences: Empirical evidence

Author

Listed:
  • Cecere, Grazia
  • Rochelandet, Fabrice

Abstract

The development of Internet technologies and personalized advertising has amplified public concern about privacy, but there is little empirical analysis of how firms exploit personal data. This article investigates how website performance, measured by web audience, is affected by intrusions into privacy. We analyze an original dataset of the 197 most visited websites in France. Our study shows that a high level of firm intrusiveness is associated with better economic performance. The results shows that consumers do not respond negatively to overly intrusive data requirements since intrusiveness is associated with higher website traffic, industry self-regulation may not be the most efficient regulation mechanism.

Suggested Citation

  • Cecere, Grazia & Rochelandet, Fabrice, 2013. "Privacy intrusiveness and web audiences: Empirical evidence," Telecommunications Policy, Elsevier, vol. 37(10), pages 1004-1014.
  • Handle: RePEc:eee:telpol:v:37:y:2013:i:10:p:1004-1014
    DOI: 10.1016/j.telpol.2013.09.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596113001250
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.telpol.2013.09.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    2. Avi Goldfarb & Catherine E. Tucker, 2011. "Privacy Regulation and Online Advertising," Management Science, INFORMS, vol. 57(1), pages 57-71, January.
    3. Park, Yong Jin, 2011. "Provision of Internet privacy and market conditions: An empirical analysis," Telecommunications Policy, Elsevier, vol. 35(7), pages 650-662, August.
    4. Mary J. Culnan & Pamela K. Armstrong, 1999. "Information Privacy Concerns, Procedural Fairness, and Impersonal Trust: An Empirical Investigation," Organization Science, INFORMS, vol. 10(1), pages 104-115, February.
    5. Alessandro Acquisti & Hal R. Varian, 2005. "Conditioning Prices on Purchase History," Marketing Science, INFORMS, vol. 24(3), pages 367-381, May.
    6. Atkinson, Robert D., 2011. "Economic doctrines and network policy," Telecommunications Policy, Elsevier, vol. 35(5), pages 413-425, June.
    7. Sandra J. Milberg & H. Jeff Smith & Sandra J. Burke, 2000. "Information Privacy: Corporate Management and National Regulation," Organization Science, INFORMS, vol. 11(1), pages 35-57, February.
    8. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    9. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    10. Curtis R. Taylor, 2004. "Consumer Privacy and the Market for Customer Information," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 631-650, Winter.
    11. Jo PIERSON, 2012. "Online Privacy in Social Media: A Conceptual Exploration of Empowerment and Vulnerability," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(88), pages 99-120, 4th quart.
    12. Varian, Hal R, 1985. "Price Discrimination and Social Welfare," American Economic Review, American Economic Association, vol. 75(4), pages 870-875, September.
    13. Benjamin Hermalin & Michael Katz, 2006. "Privacy, property rights and efficiency: The economics of privacy as secrecy," Quantitative Marketing and Economics (QME), Springer, vol. 4(3), pages 209-239, September.
    14. Grazia Cecere, 2012. "Economics of soft innovation : a review article," Post-Print hal-02408657, HAL.
    15. Grazia Cecere, 2012. "Economics of soft innovation: a review article," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 827-835, November.
    16. Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mpinganjira, Mercy & Maduku, Daniel K., 2019. "Ethics of mobile behavioral advertising: Antecedents and outcomes of perceived ethical value of advertised brands," Journal of Business Research, Elsevier, vol. 95(C), pages 464-478.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Morlok, Tina & Matt, Christian & Hess, Thomas, 2017. "Privatheitsforschung in den Wirtschaftswissenschaften: Entwicklung, Stand und Perspektiven," Working Papers 1/2017, University of Munich, Munich School of Management, Institute for Information Systems and New Media.
    2. Avi Goldfarb, 2014. "What is Different About Online Advertising?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(2), pages 115-129, March.
    3. Cecere, Grazia & Le Guel, Fabrice & Soulié, Nicolas, 2012. "Perceived Internet privacy concerns on social network in Europe," MPRA Paper 41437, University Library of Munich, Germany.
    4. Florian Hoffmann & Roman Inderst & Marco Ottaviani, 2020. "Persuasion Through Selective Disclosure: Implications for Marketing, Campaigning, and Privacy Regulation," Management Science, INFORMS, vol. 66(11), pages 4958-4979, November.
    5. Blades, Nicholas & Herrera-González, Fernando, 2016. "An Economic Analysis of Personal Data Protection Obligations in the European Union," 27th European Regional ITS Conference, Cambridge (UK) 2016 148661, International Telecommunications Society (ITS).
    6. Caleb S. Fuller, 2018. "Privacy law as price control," European Journal of Law and Economics, Springer, vol. 45(2), pages 225-250, April.
    7. Caleb S. Fuller, 2019. "Is the market for digital privacy a failure?," Public Choice, Springer, vol. 180(3), pages 353-381, September.
    8. Jin-Hyuk Kim & Liad Wagman, 2015. "Screening incentives and privacy protection in financial markets: a theoretical and empirical analysis," RAND Journal of Economics, RAND Corporation, vol. 46(1), pages 1-22, March.
    9. Vincent Conitzer & Curtis R. Taylor & Liad Wagman, 2012. "Hide and Seek: Costly Consumer Privacy in a Market with Repeat Purchases," Marketing Science, INFORMS, vol. 31(2), pages 277-292, March.
    10. Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
    11. Michael Kummer & Patrick Schulte, 2019. "When Private Information Settles the Bill: Money and Privacy in Google’s Market for Smartphone Applications," Management Science, INFORMS, vol. 65(8), pages 3470-3494, August.
    12. Kesler, Reinhold & Kummer, Michael E. & Schulte, Patrick, 2017. "Mobile applications and access to private data: The supply side of the Android ecosystem," ZEW Discussion Papers 17-075, ZEW - Leibniz Centre for European Economic Research.
    13. Kummer, Michael & Schulte, Patrick, 2014. "Money and privacy: Android market evidence," ZEW Discussion Papers 14-131, ZEW - Leibniz Centre for European Economic Research.
    14. Rupayan Pal & Sumit Shrivastav, 2024. "Privacy regulation, cognitive ability, and stability of collusion," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2024-004, Indira Gandhi Institute of Development Research, Mumbai, India.
    15. Potoglou, Dimitris & Palacios, Juan & Feijoo, Claudio & Gómez Barroso, Jose-Luis, 2015. "The supply of personal information: A study on the determinants of information provision in e-commerce scenarios," 26th European Regional ITS Conference, Madrid 2015 127174, International Telecommunications Society (ITS).
    16. Dengler, Sebastian & Prüfer, Jens, 2021. "Consumers' privacy choices in the era of big data," Games and Economic Behavior, Elsevier, vol. 130(C), pages 499-520.
    17. Oliver Budzinski & Annika Stöhr, 2019. "Competition policy reform in Europe and Germany – institutional change in the light of digitization," European Competition Journal, Taylor & Francis Journals, vol. 15(1), pages 15-54, January.
    18. Lagerlöf, Johan N.M., 2023. "Surfing incognito: Welfare effects of anonymous shopping," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    19. Florian Hoffmann & Roman Inderst & Marco Ottaviani, 2013. "Hypertargeting, Limited Attention, and Privacy: Implications for Marketing and Campaigning," Working Papers 479, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    20. Miettinen, Topi & Stenbacka, Rune, 2015. "Personalized pricing versus history-based pricing: implications for privacy policy," Information Economics and Policy, Elsevier, vol. 33(C), pages 56-68.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:37:y:2013:i:10:p:1004-1014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.