Disclosure of Personal Information Under Risk of Privacy Shocks
Quaderni - Working Paper DSE N° 1055
24 Pages Posted: 24 Feb 2016
Date Written: August 25, 2015
Breaches of the security of personal data collected by firms are reported almost daily. Companies are under an increasing political pressure to notify individuals whose privacy as been breached. At the moment, we know virtually nothing about the behavioral impact of data breach notifications. We present the results of an experimental study designed to investigate how breach notifications change the individual’s propensity to provide sensitive personal information to firms. In contrast to the theory (where breach notifications have no behavioral effect), our main result shows that notifications induce a sub-group of individuals to disclose less information to a firm, i.e. those with personally sensitive information.
Keywords: Privacy, information sharing, data protection
JEL Classification: D43, L14, O30
Suggested Citation: Suggested Citation