Disclosure of Personal Information Under Risk of Privacy Shocks

Nicola Jentzsch

DIW Berlin

Caterina Giannetti

University of Jena; University of Bologna - Department of Economics

January 24, 2011

Individuals disclose an increasing amount of personal information when buying goods or services. Personal details are revealed despite the rising threat of privacy breaches at firms that collect the information. Yet, we know surprisingly little about the trade-offs individuals consider when disclosing personal information in economic transactions. We present this problem as a dynamic lottery with personal information under the risk of privacy shocks. Subjects in the experiment receive private information on whether they are a good or bad type. We explore how the notification about a privacy breach changes an individual's behavior with regard to disclosing such information. This paper describes our experimental design as well as preliminary theoretical predictions.

Keywords: Privacy, information sharing, data protection

JEL Classification: D43, L14, O30

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Date posted: January 21, 2012 ; Last revised: April 7, 2012

Suggested Citation

Jentzsch, Nicola and Giannetti, Caterina, Disclosure of Personal Information Under Risk of Privacy Shocks (January 24, 2011). Available at SSRN: http://ssrn.com/abstract=1988854 or http://dx.doi.org/10.2139/ssrn.1988854

Contact Information

Nicola Jentzsch (Contact Author)
DIW Berlin ( email )
Mohrenstraße 58
Berlin, 10117
Caterina Giannetti
University of Jena ( email )
Furstengraben 1
Jena, Thuringa 07743
University of Bologna - Department of Economics ( email )
Strada Maggiore 45
Bologna, 40125
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