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The Economic Value of Personal Information and Policy Implication

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  • Kim, Jiin
  • Nam, Changi
  • Kim, Seongcheol

Abstract

Personal information is essential in an information-oriented society for societal development and as a valuable business resource. However, because of poor management and a lack of proper protection, leakage of personal information can take place over time, and the standard for compensation is not well established. In order to establish appropriate policies for its protection, we need to know the economic value of personal information. Using conjoint analysis, we analyze the potential value of personal information by calculating the marginal willingness to pay of Korean consumers for each attribute of personal information, which we estimate to be 7501.70 South Korean won (about 6.81 US dollars) per month. After indirectly estimating the economic value of personal information, we provide some political implications regarding the potential market size of any personal information protection service.

Suggested Citation

  • Kim, Jiin & Nam, Changi & Kim, Seongcheol, 2015. "The Economic Value of Personal Information and Policy Implication," 26th European Regional ITS Conference, Madrid 2015 127155, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse15:127155
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    References listed on IDEAS

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    1. Heng Xu & Hock-Hai Teo & Bernard C. Y. Tan & Ritu Agarwal, 2012. "Research Note ---Effects of Individual Self-Protection, Industry Self-Regulation, and Government Regulation on Privacy Concerns: A Study of Location-Based Services," Information Systems Research, INFORMS, vol. 23(4), pages 1342-1363, December.
    2. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    3. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    4. John Mackenzie, 1993. "A Comparison of Contingent Preference Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 593-603.
    5. Curtis R. Taylor, 2004. "Consumer Privacy and the Market for Customer Information," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 631-650, Winter.
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    Keywords

    The value of personal information; Marginal willingness to pay; Conjoint analysis; Multinomial logit model;
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