Full Citation
Title: How Much Is Data Privacy Worth? A Preliminary Investigation
Citation Type: Journal Article
Publication Year: 2019
ISBN:
ISSN: 0168-7034
DOI: 10.1007/s10603-019-09419-y
NSFID:
PMCID:
PMID:
Abstract: Do consumers value data privacy? How much? In a survey of 2,416 Americans, we find that the median consumer is willing to pay just $5 per month to maintain data privacy (along specified dimensions), but would demand $80 to allow access to personal data. This is a “superendowment effect,” much higher than the 1:2 ratio often found between willingness to pay and willingness to accept. In addition, people demand significantly more money to allow access to personal data when primed that such data includes health-related data than when primed that such data includes demographic data. We analyze reasons for these disparities and offer some notations on their implications for theory and practice. A general theme is that because of a lack of information and behavioural biases, both willingness to pay and willingness to accept measures are highly unreliable guides to the welfare effects of retaining or giving up data privacy. Gertrude Stein’s comment about Oakland, California may hold for consumer valuations of data privacy: “There is no there there.” For guidance, policymakers should give little or no attention to either of those conventional measures of economic value, at least when steps are not taken to overcome deficits in information and behavioural biases.
Url: http://link.springer.com/10.1007/s10603-019-09419-y
Url: https://link.springer.com/article/10.1007/s10603-019-09419-y
User Submitted?: No
Authors: Winegar, A. G.; Sunstein, C. R.
Periodical (Full): Journal of Consumer Policy
Issue: 3
Volume: 42
Pages: 425-440
Data Collections: IPUMS USA
Topics: Population Data Science
Countries: United States