No abstract

No abstract

No abstract

No abstract

In an experiment, the authors distinguish between the impact of privacy violations and security breaches on the subjects' trust and behavior. They focus on first-order effects and thus the direct consumer reaction. While privacy is of prime importance for building trust, the actual behavior is affected less and customers value security higher when it comes to actual decision making. Evidence is found for the so-called "privacy paradox" which describes that people do not act according to their privacy concerns.