Disclosure of Personal Information under Risk of Privacy Shocks

Quaderni DSE Working Paper N° 875

29 Pages Posted: 28 Mar 2013

See all articles by Francesco Feri

Francesco Feri

University of London

Caterina Giannetti

University of Jena; University of Bologna - Department of Economics

Nicola Jentzsch

DIW Berlin

Multiple version iconThere are 3 versions of this paper

Date Written: March 27, 2013

Abstract

Companies are under an increasing pressure by policy makers to publicize data breaches. Such notification obligations require announcing the loss of personal data collected from customers, because of hacker attacks or other incidents. While notification is likely to impact on firms’ reputation, we know little about the impact such notifications have on consumers with respect to disclosure of their personal data. We present the problem as a dynamic lottery with personal data under the risk of privacy shocks and experimentally study how the privacy breach notification changes an individual’s behavior regarding data disclosure. Our results suggest that the notification induces individuals – disregarding the sensitivity of their data – to disclose more.

Keywords: Privacy, information sharing, data protection

JEL Classification: D43, L14, O30

Suggested Citation

Feri, Francesco and Giannetti, Caterina and Jentzsch, Nicola, Disclosure of Personal Information under Risk of Privacy Shocks (March 27, 2013). Quaderni DSE Working Paper N° 875. Available at SSRN: https://ssrn.com/abstract=2240253 or http://dx.doi.org/10.2139/ssrn.2240253

Francesco Feri (Contact Author)

University of London ( email )

Senate House
Malet Street
London, WC1E 7HU
United Kingdom

Caterina Giannetti

University of Jena ( email )

Furstengraben 1
Jena, Thuringa 07743
Germany

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Nicola Jentzsch

DIW Berlin ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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