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Privacy trade-offs in the ride-hailing services

Author

Listed:
  • Michał Paliński

    (Faculty of Economic Sciences, University of Warsaw; Digital Economy Lab (DELab UW)

Abstract

We test for users readiness for co-financing ride-hailing service with their personal data applying a Discrete Choice Experiment. We design an experiment in which respondents are asked to choose between hypothetical app-based taxi rides which offered discounts as a compensation for intruding their privacy and a regular service. Our analysis compare how awareness of rights stemming from GDPR affects respondent’s privacy preferences. Cross-group analysis indicate that reminding users about their rights stemming from the GDPR significantly increases their valuation of personal data. The results of WTA analysis suggest that there is a market for "pay with your data" business models.

Suggested Citation

  • Michał Paliński, 2021. "Privacy trade-offs in the ride-hailing services," Working Papers 2021-14, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2021-14
    as

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    File URL: https://www.wne.uw.edu.pl/index.php/download_file/6543/
    File Function: First version, 2021
    Download Restriction: no
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    More about this item

    Keywords

    economics of privacy; mobile apps; DCE; mixed logit; WTA;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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