The Value of Online Information Privacy: An Empirical Investigation
Concern over online information privacy is widespread and rising. However, prior research is silent about the value of information privacy in the presence of potential benefits from sharing personally identifiable information. We analyzed individuals' trade-offs between the benefits and costs of providing personal information to websites. We found that benefits - monetary reward and future convenience - significantly affect individuals' preferences over websites with differing privacy policies. We also quantified the value of website privacy protection. Among U.S. subjects, protection against errors, improper access, and secondary use of personal information is worth US$30.49 - 44.62. Finally, we identified three distinct segments of Internet consumers - privacy guardians, information sellers, and convenience seekers.
|Date of creation:||01 Apr 2003|
|Date of revision:||01 Apr 2003|
|Note:||Type of Document - PDF; prepared on Windows XP; pages: 29; figures: included|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- K. Sridhar Moorthy, 1984. "Market Segmentation, Self-Selection, and Product Line Design," Marketing Science, INFORMS, vol. 3(4), pages 288-307.
- Roger Hartley & Lisa Farrell, 1998.
"Can Expected Utility Theory Explain Gambling?,"
Keele Department of Economics Discussion Papers (1995-2001)
98/02, Department of Economics, Keele University.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279-279.
- Leclerc, France & Schmitt, Bernd H & Dube, Laurette, 1995. " Waiting Time and Decision Making: Is Time like Money?," Journal of Consumer Research, Oxford University Press, vol. 22(1), pages 110-119, June.
- Ratchford, Brian T, 2001. " The Economics of Consumer Knowledge," Journal of Consumer Research, Oxford University Press, vol. 27(4), pages 397-411, March.
- Kathy A. Stewart & Albert H. Segars, 2002. "An Empirical Examination of the Concern for Information Privacy Instrument," Information Systems Research, INFORMS, vol. 13(1), pages 36-49, March.
- Sandra J. Milberg & H. Jeff Smith & Sandra J. Burke, 2000. "Information Privacy: Corporate Management and National Regulation," Organization Science, INFORMS, vol. 11(1), pages 35-57, February.
- Brinberg, David & Wood, Ronald, 1983. " A Resource Exchange Theory Analysis of Consumer Behavior," Journal of Consumer Research, Oxford University Press, vol. 10(3), pages 330-338, December.
- Lisa Farrell & Roger Hartley, 2002. "Can expected utility theory explain gambling?," Open Access publications 10197/539, School of Economics, University College Dublin.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpio:0304001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.