The Economics of Privacy

  title={The Economics of Privacy},
  author={Alessandro Acquisti and Curtis R. Taylor and Liad Wagman},
  journal={Information Privacy Law eJournal},
This article summarizes and draws connections among diverse streams of theoretical and empirical research on the economics of privacy. We focus on the economic value and consequences of protecting and disclosing personal information, and on consumers' understanding and decisions regarding the trade-offs associated with the privacy and the sharing of personal data. We highlight how the economic analysis of privacy evolved over time, as advancements in information technology raised increasingly… 
The Dynamic Effect of Information Privacy Law
This article identifies circumstances by exploring the ex-ante incentives created by entitlements to personal data and evaluating the long-term effects of privacy and provides a new justification for privacy rules by casting them as entitlements over personal information.
Protecting Consumers in Privacy and Data Security: A Perspective of Information Economics
This note provides an economic approach to consumer privacy and data security based on the extensive economic literature on how information flows, and is used, in the marketplace. We apply that
The Data Privacy Paradox and Digital Demand
There is no relationship between the respondents’ self-stated privacy concerns and their number of data-sharing authorizations, confirming the puzzling data privacy paradox and a curious finding that users with stronger privacy concerns tend to benefit more from using mini-programs.
Privacy and Behavioral Economics
This chapter discusses the role of public policy in the protection of privacy in the information age and the degree to which privacy concerns are malleable and prone to manipulations by commercial and government entities.
Secrets and Likes: The Drive for Privacy and the Difficulty of Achieving It in the Digital Age
Contrary to depictions of online sharing behaviors as careless, it is shown how consumers fundamentally care about online privacy, and evidence of numerous actions they take to protect it is presented.
A Query-Theory Perspective of Privacy Decision Making
It is found that effects of rational and behavioral factors are associated with differences in the order and valence of queries considered in privacy settings, confirming that understanding how differences in privacy choice emerge can help harmonize disparate perspectives on privacy decision making.
Economic essays on privacy, big data, and climate change
This doctoral thesis aims to advance our understanding of major topics of concern in the 21st century using theoretical as well as empirical economic methodologies. All three topics do and will
Understanding Privacy Online: Development of a Social Contract Approach to Privacy
Recent scholarship in philosophy, law, and information systems suggests that respecting privacy entails understanding the implicit privacy norms about what, why, and to whom information is shared
A measure of the implicit value of privacy under risk
Many online transactions and digital services depend on consumers’ willingness to take privacy risks, such as when shopping online, joining social networks, using online banking or interacting with
All of me? Users’ preferences for privacy-preserving data markets and the importance of anonymity
The results show that the anonymization level has the greatest impact on the willingness to share data, followed by the type of data, which contributes to an understanding of how privacy-preserving data markets could be designed to suit users’ preferences.


Information Privacy Concerns, Procedural Fairness, and Impersonal Trust: An Empirical Investigation
This research addresses the tensions that arise between the collection and use of personal information that people provide in the course of most consumer transactions, and privacy. In today's
Privacy and human behavior in the age of information
This Review summarizes and draws connections between diverse streams of empirical research on privacy behavior: people’s uncertainty about the consequences of privacy-related behaviors and their own preferences over those consequences; the context-dependence of people's concern about privacy; and the degree to which privacy concerns are malleable—manipulable by commercial and governmental interests.
Alan Westin's Privacy Homo Economicus
Homo economicus reliably makes an appearance in regulatory debates concerning information privacy. Under the still-dominant U.S. “notice and choice” approach to consumer information privacy, the
What Is Privacy Worth?
Understanding the value that individuals assign to the protection of their personal data is of great importance for business, law, and public policy. We use a field experiment informed by behavioral
The Governance of Privacy: Policy Instruments in Global Perspective
Privacy protection, according to Colin Bennett and Charles Raab, involves politics and public policy as much as it does law and technology. Moreover, the protection of our personal information in a
The Economics and Regulation of Financial Privacy - A Comparative Analysis of the United States and Europe
This paper analyzes the economics and regulation of financial privacy. Financial intermediaries produce and process vast amounts of personal information, therefore, the primary focus is on
incantations of “privacy” are not nuanced enough to capture the problems involved. The 9/11 Commission Report, for example, recommends that, as government agencies engage in greater information
Sleights of privacy: framing, disclosures, and the limits of transparency
It is illustrated in a series of experiments that even simple privacy notices do not consistently impact disclosure behavior, and may in fact be used to nudge individuals to disclose variable amounts of personal information.
Privacy law as price control
The median Internet user is concerned about digital advertisers collecting personal information. To address these fears, the European Union passed the Privacy Directive to regulate the common
Privacy, property rights and efficiency: The economics of privacy as secrecy
There is a long history of governmental efforts to protect personal privacy and strong debates about the merits of such policies. A central element of privacy is the ability to control the