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The privacy paradox: a challenge to decision theory?

Author

Listed:
  • Jacopo Arpetti

    (University of Rome Tor Vergata)

  • Marco Delmastro

    (Autorità per le Garanzie nelle Comunicazioni)

Abstract

In the present research we propose a methodology—to our knowledge, the first attempt in this sense—that considers information asymmetries when the degree of privacy concerning individuals is detected. Such filtering (“privacy concerns” degree as a function of “data awareness” level) allows to highlight the individuals’ desired level of privacy—and related privacy concerns—analyzing whether individuals’ data disclosure decisions are taken consciously or as the result of a “blind” (unaware) choice, considering data gathering practices—related level of consciousness. Previous works may have been biased due to the lack of such observation. Our measurement has been conducted taking into account the individuals’ awareness with respect to data collection techniques performed by mobile applications in Italy. As a matter of fact, if individuals’ privacy preferences among consumers are not distributed in a uniform way, this results in socially regressive outcomes.

Suggested Citation

  • Jacopo Arpetti & Marco Delmastro, 2021. "The privacy paradox: a challenge to decision theory?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(4), pages 505-525, December.
  • Handle: RePEc:spr:epolin:v:48:y:2021:i:4:d:10.1007_s40812-021-00192-z
    DOI: 10.1007/s40812-021-00192-z
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Digital markets; Asymmetric information; Implicit transactions; Data regulation; Privacy preferences; Privacy paradox;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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