On the Value of Privacy from Telemarketing: Evidence from the 'Do Not Call' Registry

Abstract:     
Despite tremendous debate and policy interest, there has been relatively little research into the issue of how much individuals value their privacy. In this paper, I estimate the demand for the value of privacy from telemarketing as provided by the federal "do not call" registry. From the demand curve, I compute two estimates of the household value of privacy: a lower bound of $3.22 per year, and a best estimate of $8.25 per year. The telemarketing industry must provide consumers with at least this much expected consumer surplus to persuade them not to conceal themselves through the "do not call" registry.

Keywords: privacy, telemarketing, do not call

JEL Classifications: D18, L81, M31

Working Paper Series