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Disclosure of personal information under risk of privacy shocks

Author

Listed:
  • Feri, Francesco
  • Giannetti, Caterina
  • Jentzsch, Nicola

Abstract

Breaches of the security of personal data collected by firms are reported almost daily. Companies are under an increasing political pressure to notify individuals whose privacy as been breached. At the moment, we know virtually nothing about the behavioral impact of data breach notifications. We present the results of an experimental study designed to investigate how breach notifications change the individual's propensity to provide sensitive personal information to firms. In contrast to the theory (where breach notifications have no behavioral effect), our main result shows that notifications induce a sub-group of individuals to disclose less information to a firm, i.e. those with personally sensitive information.

Suggested Citation

  • Feri, Francesco & Giannetti, Caterina & Jentzsch, Nicola, 2016. "Disclosure of personal information under risk of privacy shocks," Journal of Economic Behavior & Organization, Elsevier, vol. 123(C), pages 138-148.
  • Handle: RePEc:eee:jeborg:v:123:y:2016:i:c:p:138-148
    DOI: 10.1016/j.jebo.2015.12.001
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jeborg:v:141:y:2017:i:c:p:233-253 is not listed on IDEAS
    2. Frik, Alisa & Gaudeul, Alexia, 2016. "The relation between privacy protection and risk attitudes, with a new experimental method to elicit the implicit monetary value of privacy," Center for European, Governance and Economic Development Research Discussion Papers 296, University of Goettingen, Department of Economics.
    3. Tor Eriksson & Lei Mao & Marie Claire Villeval, 2017. "Saving face and group identity," Experimental Economics, Springer;Economic Science Association, vol. 20(3), pages 622-647, September.
    4. Gaudeul, Alexia & Giannetti, Caterina, 2015. "Privacy, trust and social network formation," Center for European, Governance and Economic Development Research Discussion Papers 269, University of Goettingen, Department of Economics.
    5. 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.
    6. repec:eee:jeborg:v:140:y:2017:i:c:p:1-17 is not listed on IDEAS

    More about this item

    Keywords

    Privacy; Information sharing; Data protection;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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