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.
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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
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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
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