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|
References listed on IDEAS
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.:
- 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.
- Lisa Farrell & Roger Hartley, 2002. "Can expected utility theory explain gambling?," Open Access publications 10197/539, School of Economics, University College Dublin.
- Ratchford, Brian T, 2001. " The Economics of Consumer Knowledge," Journal of Consumer Research, Oxford University Press, vol. 27(4), pages 397-411, March.
- Roger Hartley & Lisa Farrell, 2002.
"Can Expected Utility Theory Explain Gambling?,"
American Economic Review,
American Economic Association, vol. 92(3), pages 613-624, June.
- Lisa Farrell & Roger Hartley, "undated". "Can Expected Utility Theory Explain Gambling?," Discussion Papers in Public Sector Economics 00/8, Department of Economics, University of Leicester.
- 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.
- 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.
- 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.
- 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.
- K. Sridhar Moorthy, 1984. "Market Segmentation, Self-Selection, and Product Line Design," Marketing Science, INFORMS, vol. 3(4), pages 288-307.
- 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. Full references (including those not matched with items on IDEAS)
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 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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.