Unwillingness to Pay for Privacy: A Field Experiment

12 Pages Posted: 6 Jul 2010

See all articles by Alastair Beresford

Alastair Beresford

affiliation not provided to SSRN

Dorothea Kübler

Social Science Research Center (WZB); Technische Universität Berlin (TU Berlin) - Faculty of Economics and Management

Sören Preibusch

University of Cambridge

Abstract

We measure willingness to pay for privacy in a field experiment. Participants were given the choice to buy a maximum of one DVD from one of two online stores. One store consistently required more sensitive personal data than the other, but otherwise the stores were identical. In one treatment, DVDs were one Euro cheaper at the store requesting more personal information, and almost all buyers chose the cheaper store. Surprisingly, in the second treatment when prices were identical, participants bought from both shops equally often.

Keywords: privacy, willingness to pay, field experiments

JEL Classification: C93, D12

Suggested Citation

Beresford, Alastair and Kübler, Dorothea F. and Preibusch, Sören, Unwillingness to Pay for Privacy: A Field Experiment. IZA Discussion Paper No. 5017. Available at SSRN: https://ssrn.com/abstract=1634484

Alastair Beresford (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Dorothea F. Kübler

Social Science Research Center (WZB) ( email )

Reichpietschufer 50
D-10785 Berlin, 10785
Germany
40 30 25491440 (Phone)

HOME PAGE: http://www.wzb.eu/mp/vam/people/dorothea_kuebler.de.htm

Technische Universität Berlin (TU Berlin) - Faculty of Economics and Management ( email )

D-10623 Berlin
Germany
+49 30 31425263 (Phone)

HOME PAGE: http://www.wiwi-experimente.tu-berlin.de/

Sören Preibusch

University of Cambridge ( email )

Computer Laboratory
15 JJ Thomson Avenue
Cambridge, Cambridgeshire CB3 0FD
United Kingdom

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