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Does reluctance to share personal data reduce citizen demand for personalized services? Evidence from a survey experiment

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  • Santamaria, Julieth
  • Roseth, Benjamin
  • Aguirre, Florencia

Abstract

Digital transformation has brought two conflicting trends: a demand for more customized services requiring the use of personal data, and a concern for data protection. Reconciling these trends may influence personalized public service design and adoption strategies. This study explores how to mitigate citizens’ reluctance to share data on personalized public services. Through a survey experiment, we offered two hypothetical services: one educational service (scholarship) and one health-related service (checkup). Respondents were randomly assigned to one of three groups, receiving different information: (i) a summary of service benefits; (ii) a summary of benefits with a data use disclosure; and (iii) a data usage disclosure. The findings show strong baseline interest in personalized services. However, data-use disclosures reduced interest in both services, resulting in declines of 2.7 to 3.0 percentage points. Providing detailed service descriptions increased interest by 5.0 and 6.1 percentage points for education and health services, respectively. This suggests that offering information about the benefits of the service can offset concerns about data privacy. These effects remained consistent among different population groups.

Suggested Citation

  • Santamaria, Julieth & Roseth, Benjamin & Aguirre, Florencia, 2025. "Does reluctance to share personal data reduce citizen demand for personalized services? Evidence from a survey experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 119(C).
    • Handle: RePEc:eee:soceco:v:119:y:2025:i:c:s2214804325001119
    DOI: 10.1016/j.socec.2025.102447
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    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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