The Digital Privacy Paradox: Small Money, Small Costs, Small Talk

Athey, Susan; Catalini, Christian; Tucker, Catherin E.

doi:10.2139/ssrn.2916489

Cited by 30 publications

(34 citation statements)

References 33 publications

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“…For example, cultural preferences for privacy is a potentially relevant factor, and data is available from surveys. However, recent research casts doubts as to their reliability due to the Digital Privacy Paradox, in that stated privacy preferences are different from observed privacy preferences (Athey et al 2017). Certain relevant national characteristics were also omitted as they underlie utilized variables, as is for instance the case of financial literacy (not included as a separate variable; Grohmann et al 2018) and financial inclusion (included in our models).…”

Section: Supportedmentioning

confidence: 99%

Global drivers of cryptocurrency infrastructure adoption

2020

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A vast digital ecosystem of entrepreneurship and exchange has sprung up with Bitcoin's digital infrastructure at its core. We explore the worldwide spread of infrastructure necessary to maintain and grow Bitcoin as a system (Bitcoin nodes) and infrastructure enabling the use of bitcoins for everyday economic transactions (Bitcoin merchants). Specifically, we investigate the role of legal, criminal, financial, and social determinants of the adoption of Bitcoin infrastructure. We offer some support for the view that the adoption of cryptocurrency infrastructure is driven by perceived failings of traditional financial systems, in that the spread of Bitcoin infrastructure is associated with low trust in banks and the financial system among inhabitants of a region, and with the occurrence of country-level inflation crises. On the other hand, our findings also suggest that active support for Bitcoin is higher in locations with well-developed banking services. Finally, we find support for the view that bitcoin adoption is also partly driven by cryptocurrencies' usefulness in engaging in illicit trade.

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Section: Supportedmentioning

confidence: 99%

Global drivers of cryptocurrency infrastructure adoption

2020

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“…This means that users expect more benefits from devices that track their information. This result is worrying in the sense that users might disclose even more data when IoT devices are equipped with convenient features as a smooth user experience is preferred over privacy protection [51].…”

Section: <001 Accepted Page 1396mentioning

confidence: 99%

I Spy with my Little Sensor Eye - Effect of Data-Tracking and Convenience on the Intention to Use Smart Technology.

Princi

Krämer

2020

Proceedings of the Annual Hawaii International Conference on System Sciences

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The increasing number of smart objects in private households leads to a profound invasion of privacy. Based on privacy calculus theory, we assume that many users accept tracking in exchange for full functioning and convenience. However, privacy calculus has not yet been tested in an area where privacy protection is a binary decision: to either use a product or not. Therefore, we examined the effect of convenience and tracking on the intention to use a smart device in a 2 x 2 betweensubjects online experiment (N = 209). While convenience is a major factor for the willingness to deploy smart technology, users do not seem to care whether these devices track their personal data or not.

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“…In practice, the results in Proposition 8 can shed light on the digital privacy paradox of Athey, Catalini, and Tucker (2017). Specifically, when aggregate information is collected, the incremental contribution of each individual consumer to the estimation of the average willingness to pay is close to nil.…”

Section: Proposition 8 (Large Markets)mentioning

confidence: 89%

“…The presence of a data externality can therefore provide a novel explanation for the digital privacy paradox experimentally documented by Athey, Catalini, and Tucker (2017), whereby small monetary incentives have large effects on subjects' willingness to relinquish their private data. In practice, this force also likely drives the extraordinary appetite of Internet platforms to gather information.…”

Section: Introductionmentioning

confidence: 99%

The Economics of Social Data

Bergemann¹,

Bonatti

2019

SSRN Journal

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A data intermediary pays consumers for information about their preferences and sells the information so acquired to firms that use it to tailor their products and prices.The social dimension of the individual data-whereby an individual's data are predictive of the behavior of others-generates a data externality that reduces the intermediary's cost of acquiring information. We derive the intermediary's optimal data policy and show that it preserves the privacy of the consumers' identities while providing precise information about market demand to the firms. This enables the intermediary to capture the entire value of information as the number of consumers grows large.Individual Data and Data Intermediaries The rise of large Internet platforms-such as Facebook, Google, and Amazon in the US, and of similar large entities in China, such as JD, Tencent and Alibaba-has led to an unprecedented collection and commercial use of individual data. The ever-increasing user bases of these platforms generate massive amounts of data about individual consumers: their preferences, their locations, their friends, their political views, and almost all other facets of their lives. In turn, many of the services provided by large Internet platforms rely critically on these data. The availability of individual-level data allows these companies to offer refined search results, personalized product recommendations, informative ratings, timely traffic data, and targeted advertisements. 1 The recent disclosures on the use and misuse of social data by Internet platforms have prompted regulators to limit the hitherto largely unsupervised use of individual data by these companies. As a result, nearly all proposed and enacted regulation to date is centered on ensuring that consumers retain control over their data. The idea is that, because consumer data must be acquired, aggregated, packaged, and sold, the allocation of control rights impacts the ultimate use of the data. 2 In particular, by assigning ownership and control to individual consumers, regulators hope to enable an efficient use of information or at least to grant individual consumers the appropriate compensation for the data they reveal. 3 Despite the appeal of the Coase theorem implicitly invoked in the regulation, it is far from evident that the resulting allocation of information is efficient due to multiple potential market failures. In this paper, we explore the implications of externalities across consumers.A central feature of the data collected from individuals is its social aspect. Namely, the data captured from an individual user are not only informative about that specific individual but also about appropriately defined nearby individuals. Thus, these individual data are really social data. The social nature of the data generates a data externality, the sign and magnitude of which depend on the ultimate use of the information so gained. In the context of geolocation data, for instance, an individual user conveys information about the traffic conditions for nearby driver...

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The Digital Privacy Paradox: Small Money, Small Costs, Small Talk

Cited by 30 publications

References 33 publications

Global drivers of cryptocurrency infrastructure adoption

Global drivers of cryptocurrency infrastructure adoption

I Spy with my Little Sensor Eye - Effect of Data-Tracking and Convenience on the Intention to Use Smart Technology.

The Economics of Social Data

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