The Value of Online Information Privacy: An Empirical Investigation
AbstractConcern over online information privacy is widespread and rising. However, prior research is silent about the value of information privacy in the presence of potential benefits from sharing personally identifiable information. We analyzed individuals' trade-offs between the benefits and costs of providing personal information to websites. We found that benefits - monetary reward and future convenience - significantly affect individuals' preferences over websites with differing privacy policies. We also quantified the value of website privacy protection. Among U.S. subjects, protection against errors, improper access, and secondary use of personal information is worth US$30.49 - 44.62. Finally, we identified three distinct segments of Internet consumers - privacy guardians, information sellers, and convenience seekers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0304001.
Length: 29 pages
Date of creation: 01 Apr 2003
Date of revision: 01 Apr 2003
Note: Type of Document - PDF; prepared on Windows XP; pages: 29; figures: included
Contact details of provider:
Web page: http://188.8.131.52
Information privacy; conjoint analysis; cost-benefit tradeoff; privacy concern; monetary reward; time-saving service;
Other versions of this item:
- Hann, Il-Horn & Hui, Kai-Lung & Lee, Tom S. & Png, Ivan P. L., 2003. "The Value of Online Information Privacy: An Empirical Investigation," Working paper 85, Regulation2point0.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
This paper has been announced in the following NEP Reports:
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.:
- Brinberg, David & Wood, Ronald, 1983. " A Resource Exchange Theory Analysis of Consumer Behavior," Journal of Consumer Research, University of Chicago Press, vol. 10(3), pages 330-38, December.
- Lisa Farrell & Roger Hartley, .
"Can Expected Utility Theory Explain Gambling?,"
Discussion Papers in Public Sector Economics
00/8, Department of Economics, University of Leicester.
- Roger Hartley & Lisa Farrell, 1998. "Can Expected Utility Theory Explain Gambling?," Keele Department of Economics Discussion Papers (1995-2001) 98/02, Department of Economics, Keele University.
- Ratchford, Brian T, 2001. " The Economics of Consumer Knowledge," Journal of Consumer Research, University of Chicago Press, vol. 27(4), pages 397-411, March.
- K. Sridhar Moorthy, 1984. "Market Segmentation, Self-Selection, and Product Line Design," Marketing Science, INFORMS, vol. 3(4), pages 288-307.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279.
- Leclerc, France & Schmitt, Bernd H & Dube, Laurette, 1995. " Waiting Time and Decision Making: Is Time like Money?," Journal of Consumer Research, University of Chicago Press, vol. 22(1), pages 110-19, June.
- Kai-Lung Hui & I.P.L. Png, 2005.
"The Economics of Privacy,"
0505007, EconWPA, revised 29 Aug 2005.
- Pau, L-F., 2006. "Privacy Management Service Contracts as a New Business Opportunity for Operators," ERIM Report Series Research in Management ERS-2006-060-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.