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The Perceived Impact of Government Regulation in Reducing Online Privacy Concern

Author

Listed:
  • Bruno Skrinjaric

    (The Institute of Economics, Zagreb)

  • Jelena Budak

    (The Institute of Economics, Zagreb)

  • Edo Rajh

    (The Institute of Economics, Zagreb)

Abstract

This paper examines the impact of regulation as an antecedent of online privacy concern. The aim is to investigate if and how perceived effectiveness of government regulation affects internet users’ concern for their privacy in the online environment. Existing research shows that perceived effectiveness and enforcement of regulatory policies reduce online privacy concern; however, it does not explain what factors influence this relationship. This research fills the gap by analyzing different perceptions of the existing country legislation and government effort to protect online privacy in the context of socio-demographic characteristics of respondents, computer anxiety, individual desire to maintain control of personal information, as well as intensity and diversity of online activities. The empirical analysis is conducted on a large sample of internet users in Croatia. The dependent variable in the regression model is online privacy concern and the model is tested with OLS and ordered probit estimation. The results confirm that perceived effectiveness of government regulation reduces online privacy concern whereas computer anxiety has a major positive impact on online privacy concern. These findings might be useful for national policy-makers and for business strategies in the context of the GDPR regulation coming in force in 2018.

Suggested Citation

  • Bruno Skrinjaric & Jelena Budak & Edo Rajh, 2018. "The Perceived Impact of Government Regulation in Reducing Online Privacy Concern," Working Papers 1803, The Institute of Economics, Zagreb.
    • Handle: RePEc:iez:wpaper:1803
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    References listed on IDEAS

    as
    1. Stjepan Srhoj & Bruno Škrinjarić & Sonja Radas, 0. "Bidding against the odds? The impact evaluation of grants for young micro and small firms during the recession," Small Business Economics, Springer, vol. 0, pages 1-21.
    2. Tamara Dinev & Paul Hart, 2006. "An Extended Privacy Calculus Model for E-Commerce Transactions," Information Systems Research, INFORMS, vol. 17(1), pages 61-80, March.
    3. Naresh K. Malhotra & Sung S. Kim & James Agarwal, 2004. "Internet Users' Information Privacy Concerns (IUIPC): The Construct, the Scale, and a Causal Model," Information Systems Research, INFORMS, vol. 15(4), pages 336-355, December.
    4. Kathy A. Stewart & Albert H. Segars, 2002. "An Empirical Examination of the Concern for Information Privacy Instrument," Information Systems Research, INFORMS, vol. 13(1), pages 36-49, March.
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    More about this item

    Keywords

    regulation; data protection; online privacy concern; Croatia;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • K2 - Law and Economics - - Regulation and Business Law

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