An empirical approach to understanding privacy valuation

An empirical approach to understanding privacy valuation

by Luc Wathieu

Part of Working paper / Division of Research, Harvard Business School -- 07-075

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The purpose of this paper is to detect the presence of sophisticated economic motives behind individual concerns for privacy. Recent theories of privacy demands in commercial contexts have assumed an economically aware and sophisticated consumer, capable of evaluating the indirect consequences of information transmission. We present evidence, from a large-scale experiment evoking a realistic context, that privacy concerns are indeed sensitive to the indirect consequences of information transmission.

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