IDEAS home Printed from https://ideas.repec.org/a/spr/jesaex/v7y2021i1d10.1007_s40881-021-00102-y.html
   My bibliography  Save this article

Paying with your personal data: the insensitivity of private information provision to asymmetric benefits

Author

Listed:
  • Bettina Rockenbach

    (University of Cologne
    Max Planck Institute for Research on Collective Goods, Research Group Experimental Economics)

  • Abdolkarim Sadrieh

    (University of Magdeburg)

  • Anne Schielke

    (University of Cologne)

Abstract

Internet services are often free of charge but ask for customers’ personal data in exchange for usage. We experimentally study whether the provision of information-based public goods is susceptible to restraint when contributions not only make contributors better off but also enable a non-contributing “big player” to acquire substantial profits. We show that the presence of the big player crowds out the willingness to provide neutral tokens, but no such effect is observed for the provision of private information. Hence, collecting anonymized personal data instead of monetary fees can be more profitable to service providers and create greater benefits for customers.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jesaex:v:7:y:2021:i:1:d:10.1007_s40881-021-00102-y
    DOI: 10.1007/s40881-021-00102-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40881-021-00102-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40881-021-00102-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    2. 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.
    3. Ben Greiner, 2015. "Subject pool recruitment procedures: organizing experiments with ORSEE," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 114-125, July.
    4. J. C. Poindexter & Julia B. Earp & David L. Baumer, 2006. "An experimental economics approach toward quantifying online privacy choices," Information Systems Frontiers, Springer, vol. 8(5), pages 363-374, December.
    5. Bettina Rockenbach & Abdolkarim Sadrieh & Anne Schielke, 2020. "Providing personal information to the benefit of others," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-15, August.
    6. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    7. Sebastian Kube & Michel Andre Marechal & Clemens Puppe, 2012. "The Currency of Reciprocity: Gift Exchange in the Workplace," American Economic Review, American Economic Association, vol. 102(4), pages 1644-1662, June.
    8. Viola Ackfeld & Werner Güth, 2019. "Personal Information Disclosure under Competition for Benefits: Is Sharing Caring?," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2019_04, Max Planck Institute for Research on Collective Goods.
    9. Volker Benndorf & Hans‐Theo Normann, 2018. "The Willingness to Sell Personal Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(4), pages 1260-1278, October.
    10. 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.
    11. Christoph Engel & Bettina Rockenbach, 2009. "We Are Not Alone: The Impact of Externalities on Public Good Provision," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2009_29, Max Planck Institute for Research on Collective Goods, revised May 2011.
    12. Janice Y. Tsai & Serge Egelman & Lorrie Cranor & Alessandro Acquisti, 2011. "The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study," Information Systems Research, INFORMS, vol. 22(2), pages 254-268, June.
    13. F. Feri & C. Giannetti & N. Jentzsch, 2016. "Disclosure of Personal Information under Risk of Privacy Shocks - 2nd ed," Working Papers wp1055, Dipartimento Scienze Economiche, Universita' di Bologna.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. 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.
    3. Boosey, Luke & Goerg, Sebastian, 2020. "The timing of discretionary bonuses – effort, signals, and reciprocity," Games and Economic Behavior, Elsevier, vol. 124(C), pages 254-280.
    4. Johannes Becker & Daniel Hopp & Karolin Süß, 2020. "How Altruistic Is Indirect Reciprocity? - Evidence from Gift-Exchange Games in the Lab," CESifo Working Paper Series 8423, CESifo.
    5. Gago, Andrés, 2021. "Reciprocity and uncertainty: When do people forgive?," Journal of Economic Psychology, Elsevier, vol. 84(C).
    6. Ackfeld, Viola & Güth, Werner, 2023. "Personal information disclosure under competition for benefits: Is sharing caring?," Games and Economic Behavior, Elsevier, vol. 140(C), pages 1-32.
    7. Gary Bolton & Axel Ockenfels & Peter Werner, 2016. "Leveraging social relationships and transparency in the insider game," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 2(2), pages 127-143, November.
    8. David J. Cooper & Krista Saral & Marie Claire Villeval, 2021. "Why Join a Team?," Management Science, INFORMS, vol. 67(11), pages 6980-6997, November.
    9. James Bland & Nikos Nikiforakis, 2013. "Tacit Coordination in Games with Third-Party Externalities," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2013_19, Max Planck Institute for Research on Collective Goods.
    10. Sliwka, Dirk & Werner, Peter, 2016. "How Do Agents React to Dynamic Wage Increases? An Experimental Study," IZA Discussion Papers 9855, Institute of Labor Economics (IZA).
    11. Leibbrandt, Andreas & Lynham, John, 2018. "Does the allocation of property rights matter in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 201-217.
    12. Daniel Woods & Maroš Servátka, 2019. "Nice to you, nicer to me: Does self-serving generosity diminish the reciprocal response?," Experimental Economics, Springer;Economic Science Association, vol. 22(2), pages 506-529, June.
    13. Hopp, Daniel & Süß, Karolin, 2024. "How altruistic is indirect reciprocity? — Evidence from gift-exchange games in the lab," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
    14. Sauermann, Jan & Beckmann, Paul, 2019. "The influence of group size on distributional fairness under voting by veto," European Journal of Political Economy, Elsevier, vol. 56(C), pages 90-102.
    15. Klockmann, Victor & von Schenk, Alicia & Villeval, Marie Claire, 2022. "Artificial intelligence, ethics, and intergenerational responsibility," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 284-317.
    16. Paetzel, Fabian & Traub, Stefan, 2017. "Skewness-adjusted social preferences: Experimental evidence on the relation between inequality, elite behavior, and economic efficiency," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 68(C), pages 130-139.
    17. Agnès Festré, 2019. "On the Nature of Fair Behaviour: Further Evidence," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 36(3), pages 193-207, December.
    18. Topi Miettinen & Olli Ropponen & Pekka Sääskilahti, 2020. "Prospect Theory, Fairness, and the Escalation of Conflict at a Negotiation Impasse," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(4), pages 1535-1574, October.
    19. Gangadharan, Lata & Nikiforakis, Nikos & Villeval, Marie Claire, 2017. "Normative conflict and the limits of self-governance in heterogeneous populations," European Economic Review, Elsevier, vol. 100(C), pages 143-156.
    20. Friehe, Tim & Utikal, Verena, 2018. "Intentions under cover – Hiding intentions is considered unfair," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 73(C), pages 11-21.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jesaex:v:7:y:2021:i:1:d:10.1007_s40881-021-00102-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.