Unwillingness to Pay for Privacy: A Field Experiment
AbstractWe measure willingness to pay for privacy in a field experiment. Participants were given the choice to buy a maximum of one DVD from one of two 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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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5017.
Length: 12 pages
Date of creation: Jun 2010
Date of revision:
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Other versions of this item:
- Beresford, Alastair R. & Kübler, Dorothea & Preibusch, Sören, 2012. "Unwillingness to pay for privacy: A field experiment," Economics Letters, Elsevier, vol. 117(1), pages 25-27.
- Alastair R. Beresford & Dorothea Kübler & Sören Preibusch, 2011. "Unwillingness to Pay for Privacy: A Field Experiment," SFB 649 Discussion Papers SFB649DP2011-010, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Beresford, Alastair R. & Kübler, Dorothea & Preibusch, Sören, 2010. "Unwillingness to pay for privacy: A field experiment," Discussion Papers, Research Unit: Market Behavior SP II 2010-03, Social Science Research Center Berlin (WZB).
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-17 (All new papers)
- NEP-CBE-2010-07-17 (Cognitive & Behavioural Economics)
- NEP-EXP-2010-07-17 (Experimental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Posner, Richard A, 1981. "The Economics of Privacy," American Economic Review, American Economic Association, vol. 71(2), pages 405-09, May.
- 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.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Privacy economics: evidence from the field
by Sören Preibusch in Light Blue Touchpaper on 2012-03-12 12:57:48
- Contradictions in privacy
by Chris Sampson in Chris Sampson on 2013-10-23 05:30:22
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