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Exploring the privacy paradox: An experimental investigation of privacy-preserving behavioral responses in online shopping

Author

Listed:
  • Hernández, Penélope
  • Morales, Antonio J.
  • Neeman, Zvika
  • Pavía, Jose M.

Abstract

This paper utilizes (an observational approach within) a controlled laboratory experiment to investigate the nature of the privacy paradox. Participants are assigned a type exogenously and engage in online shopping to earn monetary rewards, while their shopping behavior is observed by an AI that aims to learn their type. Our findings indicate that participants willingly disclose significant amounts of private information, and persist in doing so even after receiving explicit information regarding the AI’s ability to learn about their type. However, we observe that the adoption of two mechanisms, namely “explainable AI” and a “privacy APP”, leads participants to adopt privacy-preserving shopping habits. Notably, this change in behavior occurs even in scenarios where the disclosure of private information has no impact on the monetary rewards. Our findings suggest that a plausible reason individuals share extensive personal information online stems from their lack of access to technologies enabling them to engage online while safeguarding their privacy.

Suggested Citation

  • Hernández, Penélope & Morales, Antonio J. & Neeman, Zvika & Pavía, Jose M., 2026. "Exploring the privacy paradox: An experimental investigation of privacy-preserving behavioral responses in online shopping," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 121(C).
    • Handle: RePEc:eee:soceco:v:121:y:2026:i:c:s2214804325001685
    DOI: 10.1016/j.socec.2025.102504
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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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