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Disclosure of personal information under risk of privacy shocks

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  • Feri, Francesco
  • Giannetti, Caterina
  • Jentzsch, Nicola

Abstract

Breaches of the security of personal data collected by firms are reported almost daily. Companies are under an increasing political pressure to notify individuals whose privacy as been breached. At the moment, we know virtually nothing about the behavioral impact of data breach notifications. We present the results of an experimental study designed to investigate how breach notifications change the individual's propensity to provide sensitive personal information to firms. In contrast to the theory (where breach notifications have no behavioral effect), our main result shows that notifications induce a sub-group of individuals to disclose less information to a firm, i.e. those with personally sensitive information.

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  • Feri, Francesco & Giannetti, Caterina & Jentzsch, Nicola, 2016. "Disclosure of personal information under risk of privacy shocks," Journal of Economic Behavior & Organization, Elsevier, vol. 123(C), pages 138-148.
    • Handle: RePEc:eee:jeborg:v:123:y:2016:i:c:p:138-148
    DOI: 10.1016/j.jebo.2015.12.001
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    Cited by:

    1. Gaudeul, Alexia & Giannetti, Caterina, 2015. "Privacy, trust and social network formation," University of Göttingen Working Papers in Economics 269, University of Goettingen, Department of Economics.
    2. Fast, Victoria & Sachs, Nikolai & Schnurr, Daniel, 2021. "Privacy Decision-Making in Digital Markets: Eliciting Individuals' Preferences for Transparency," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238020, International Telecommunications Society (ITS).
    3. Tor Eriksson & Lei Mao & Marie Claire Villeval, 2017. "Saving face and group identity," Experimental Economics, Springer;Economic Science Association, vol. 20(3), pages 622-647, September.
    4. Gaudeul, Alexia & Giannetti, Caterina, 2017. "The effect of privacy concerns on social network formation," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 233-253.
    5. Morlok, Tina & Matt, Christian & Hess, Thomas, 2017. "Privatheitsforschung in den Wirtschaftswissenschaften: Entwicklung, Stand und Perspektiven," Working Papers 1/2017, University of Munich, Munich School of Management, Institute for Information Systems and New Media.
    6. Biener, Christian & Eling, Martin & Lehmann, Martin, 2020. "Balancing the desire for privacy against the desire to hedge risk," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 608-620.
    7. Frik, Alisa & Gaudeul, Alexia, 2016. "The relation between privacy protection and risk attitudes, with a new experimental method to elicit the implicit monetary value of privacy," University of Göttingen Working Papers in Economics 296, University of Goettingen, Department of Economics.
    8. Bettina Rockenbach & Abdolkarim Sadrieh & Anne Schielke, 2021. "Paying with your personal data: the insensitivity of private information provision to asymmetric benefits," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 7(1), pages 64-73, September.
    9. Marreiros, Helia & Tonin, Mirco & Vlassopoulos, Michael & Schraefel, M.C., 2017. "“Now that you mention it”: A survey experiment on information, inattention and online privacy," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 1-17.
    10. Anna D’Annunzio & Elena Menichelli, 2022. "A market for digital privacy: consumers’ willingness to trade personal data and money," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(3), pages 571-598, September.

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    More about this item

    Keywords

    Privacy; Information sharing; Data protection;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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