Demand for Privacy from Data Brokers

We conduct a novel, randomized-controlled experiment to measure peoples' valuations, beliefs, and expectations about data privacy from data brokers. Our experimental test is to simultaneously understand (1) whether individuals are aware of their data exposure to data brokers and (2) what they are willing to pay to retract and delete their data exposure. To do this, we employ the use of an information intervention to treat individuals to correct and, possibly, new information about data brokers and their own exposure to them. In a pilot conducted, 300 panelists were recruited from Cornell University. We provide incentive-compatible choices to panelists to understand their reservation prices for privacy protection from data brokers. A real privacy product to conduct a deletion of users' data is auctioned to study participants to elicit the reservation values they assign to this service. After experimental interventions, approximately 25 percent of subjects in the personalized information treatment group revised selected-into revising their valuations, compared to the 15 to 16 percent of subjects in the control group. We document an interesting pattern where there is downward revision among subjects who received personalized information about their real data exposure.