On the Value of Privacy from Telemarketing: Evidence from the 'Do Not Call' Registry
8 Pages Posted: 22 Jul 2007
Date Written: June 2007
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 Classification: D18, L81, M31
Suggested Citation: Suggested Citation