IDEAS home Printed from https://ideas.repec.org/a/gam/jgames/v9y2018i2p18-d140971.html
   My bibliography  Save this article

Generalized Trust, Need for Cognitive Closure, and the Perceived Acceptability of Personal Data Collection

Author

Listed:
  • David Chavanne

    (Department of Economics, Connecticut College, 270 Mohegan Ave, New London, CT 06320, USA)

Abstract

This vignette-based study examines how generalized trust and the need for cognitive closure relate to the perceived acceptability of contemporary business methods of personal data collection. Subjects are exposed to four scenarios that describe a method of personal data collection, involving either brand-name companies or generic descriptors of companies. After each scenario, subjects rate how acceptable they find the practice of data collection, along with the frequency and quality of experiences that they have had with the company (for brand names) or type of company (for generic descriptors). Judgments of perceived acceptability are analyzed, both across the portfolio of judgments and within each separate scenario. While analyses of each separate scenario point to the context-dependency of the perceived acceptability of data collection, several results stand out when analyzing the subjects’ portfolios of responses in the aggregate. Higher generalized trust is linked to a higher average acceptability rating, and the effect is stronger when companies are described with brand names rather than generic descriptors. Uniformly, however, no relationship is found between need for cognitive closure and perceived acceptability. Additionally, positive experiences are found to be a stronger predictor of perceived acceptability of data collection than frequency of use.

Suggested Citation

  • David Chavanne, 2018. "Generalized Trust, Need for Cognitive Closure, and the Perceived Acceptability of Personal Data Collection," Games, MDPI, vol. 9(2), pages 1-18, April.
  • Handle: RePEc:gam:jgames:v:9:y:2018:i:2:p:18-:d:140971
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-4336/9/2/18/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2073-4336/9/2/18/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    2. Schudy, Simeon & Utikal, Verena, 2017. "‘You must not know about me’—On the willingness to share personal data," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 1-13.
    3. Alessandro ACQUISTI & Jens GROSSKLAGS, 2012. "An Online Survey Experiment on Ambiguity and Privacy," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(88), pages 19-39, 4th quart.
    4. Christian Bjørnskov, 2007. "Determinants of generalized trust: A cross-country comparison," Public Choice, Springer, vol. 130(1), pages 1-21, January.
    5. La Porta, Rafael & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1997. "Legal Determinants of External Finance," Journal of Finance, American Finance Association, vol. 52(3), pages 1131-1150, July.
    6. Frank A.G. den Butter & Robert H.J. Mosch, 2003. "The Dutch Miracle: Institutions, Networks, and Trust," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(2), pages 362-391, June.
    7. Paul Benjamin Lowry & Anthony Vance & Greg Moody & Bryan Beckman & Aaron Read, 2008. "Explaining and Predicting the Impact of Branding Alliances and Web Site Quality on Initial Consumer Trust of E-Commerce Web Sites," Post-Print halshs-00684347, HAL.
    8. Dimitris Georgarakos & Giacomo Pasini, 2011. "Trust, Sociability, and Stock Market Participation," Review of Finance, European Finance Association, vol. 15(4), pages 693-725.
    9. L. Bottazzi & M. Da Rin & T. Hellmann, 2007. "The Importance of Trust for Investment: Evidence from Venture Capital," Working Papers 612, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. repec:cup:judgdm:v:5:y:2010:i:5:p:411-419 is not listed on IDEAS
    11. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2009. "Cultural Biases in Economic Exchange?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1095-1131.
    12. Alessandro Acquisti & Curtis Taylor & Liad Wagman, 2016. "The Economics of Privacy," Journal of Economic Literature, American Economic Association, vol. 54(2), pages 442-492, June.
    13. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2008. "Trusting the Stock Market," Journal of Finance, American Finance Association, vol. 63(6), pages 2557-2600, December.
    14. repec:dau:papers:123456789/12465 is not listed on IDEAS
    15. Leslie K. John & Alessandro Acquisti & George Loewenstein, 2011. "Strangers on a Plane: Context-Dependent Willingness to Divulge Sensitive Information," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(5), pages 858-873.
    16. Alessandro Acquisti & Leslie K. John & George Loewenstein, 2013. "What Is Privacy Worth?," The Journal of Legal Studies, University of Chicago Press, vol. 42(2), pages 249-274.
    17. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
    18. Kenneth S. Chan, 2007. "Trade, Social Values, and the Generalized Trust," Southern Economic Journal, John Wiley & Sons, vol. 73(3), pages 733-753, January.
    19. Vermeir, Iris & Van Kenhove, Patrick & Hendrickx, Hendrik, 2002. "The influence of need for closure on consumer's choice behaviour," Journal of Economic Psychology, Elsevier, vol. 23(6), pages 703-727, December.
    20. Mary J. Culnan & Pamela K. Armstrong, 1999. "Information Privacy Concerns, Procedural Fairness, and Impersonal Trust: An Empirical Investigation," Organization Science, INFORMS, vol. 10(1), pages 104-115, February.
    21. Alvin Etang & David Fielding & Stephen Knowles, 2011. "Does trust extend beyond the village? Experimental trust and social distance in Cameroon," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 15-35, March.
    22. Morando, Federico & Iemma, Raimondo & Raiteri, Emilio, 2014. "Privacy evaluation: what empirical research on users' valuation of personal data tells us," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 3(2), pages 1-12.
    23. MinJae Lee & JinKyu Lee, 2012. "The impact of information security failure on customer behaviors: A study on a large-scale hacking incident on the internet," Information Systems Frontiers, Springer, vol. 14(2), pages 375-393, April.
    24. Janice Y. Tsai & Serge Egelman & Lorrie Cranor & Alessandro Acquisti, 2011. "The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study," Information Systems Research, INFORMS, vol. 22(2), pages 254-268, June.
    25. Berinsky, Adam J. & Huber, Gregory A. & Lenz, Gabriel S., 2012. "Evaluating Online Labor Markets for Experimental Research: Amazon.com's Mechanical Turk," Political Analysis, Cambridge University Press, vol. 20(3), pages 351-368, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Janis Cloos & Björn Frank & Lukas Kampenhuber & Stephany Karam & Nhat Luong & Daniel Möller & Maria Monge-Larrain & Nguyen Tan Dat & Marco Nilgen & Christoph Rössler, 2019. "Is Your Privacy for Sale? An Experiment on the Willingness to Reveal Sensitive Information," Games, MDPI, vol. 10(3), pages 1-15, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Helia Marreiros & Mirco Tonin & Michael Vlassopoulos & M.C. Schraefel, 2016. "“Now that you mention it”: A Survey Experiment on Information, Salience and Online Privacy," BEMPS - Bozen Economics & Management Paper Series BEMPS34, Faculty of Economics and Management at the Free University of Bozen.
    2. Alessandro, Martin & Cardinale Lagomarsino, Bruno & Scartascini, Carlos & Streb, Jorge & Torrealday, Jerónimo, 2021. "Transparency and Trust in Government. Evidence from a Survey Experiment," World Development, Elsevier, vol. 138(C).
    3. Daniel Hain & Sofia Johan & Daojuan Wang, 2016. "Determinants of Cross-Border Venture Capital Investments in Emerging and Developed Economies: The Effects of Relational and Institutional Trust," Journal of Business Ethics, Springer, vol. 138(4), pages 743-764, November.
    4. Paul Brockman & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 2022. "Does social trust affect international contracting? Evidence from foreign bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1011-1044, August.
    5. Berggren, Niclas & Daunfeldt, Sven-Olov & Hellström, Jörgen, 2014. "Social trust and central-bank independence," European Journal of Political Economy, Elsevier, vol. 34(C), pages 425-439.
    6. Ali Recayi Ogcem & Ruth Tacneng & Amine Tarazi, 2021. "Trust and Financial Development: Forms of Trust and Ethnic Fractionalization Matter," Working Papers hal-03322592, HAL.
    7. Alisa Frik & Luigi Mittone, 2016. "Factors Influencing the Perceived Websites' Privacy Trustworthiness and Users' Purchase Intentions," CEEL Working Papers 1609, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    8. Liu, Yuna, 2016. "Trust and stock market correlation: a cross-country analysis," Umeå Economic Studies 924, Umeå University, Department of Economics.
    9. Horváth, Roman, 2013. "Does trust promote growth?," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 777-788.
    10. Paul Brockman & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 0. "Does social trust affect international contracting? Evidence from foreign bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-34.
    11. Carin van der Cruijsen, 2017. "Payments data: do consumers want to keep them in a safe or turn them into gold?," DNB Working Papers 563, Netherlands Central Bank, Research Department.
    12. Drobetz, Wolfgang & Mönkemeyer, Marwin & Requejo, Ignacio & Schröder, Henning, 2023. "Foreign bias in institutional portfolio allocation: The role of social trust," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 233-269.
    13. Anna D’Annunzio & Elena Menichelli, 2022. "A market for digital privacy: consumers’ willingness to trade personal data and money," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(3), pages 571-598, September.
    14. Cline, Brandon N. & Williamson, Claudia R., 2016. "Trust and the regulation of corporate self-dealing," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 572-590.
    15. Panagiota Makrychoriti & Fotios Pasiouras & Menelaos Tasiou, 2022. "Financial stress and economic growth: The moderating role of trust," Kyklos, Wiley Blackwell, vol. 75(1), pages 48-74, February.
    16. Qin, Wei & Liang, Quanxi & Jiao, Yan & Lu, Meiting & Shan, Yaowen, 2022. "Social trust and dividend payouts: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    17. Amore, Mario Daniele & Epure, Mircea, 2021. "Riding out of a financial crisis: The joint effect of trust and corporate ownership," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 92-109.
    18. Mehmet Fatih Ekinci & Şebnem Kalemli-Özcan & Bent E. Sørensen, 2009. "Financial Integration within EU Countries: The Role of Institutions, Confidence and Trust," NBER Chapters, in: NBER International Seminar on Macroeconomics 2007, pages 325-391, National Bureau of Economic Research, Inc.
    19. Pevzner, Mikhail & Xie, Fei & Xin, Xiangang, 2015. "When firms talk, do investors listen? The role of trust in stock market reactions to corporate earnings announcements," Journal of Financial Economics, Elsevier, vol. 117(1), pages 190-223.
    20. Caleb S. Fuller, 2019. "Is the market for digital privacy a failure?," Public Choice, Springer, vol. 180(3), pages 353-381, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jgames:v:9:y:2018:i:2:p:18-:d:140971. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.