An Empirical Approach to Understanding Privacy Valuation

10 Pages Posted: 26 Apr 2007

See all articles by Luc Wathieu

Luc Wathieu

Georgetown University McDonough School of Business

Allan A. Friedman

Harvard University - Harvard Kennedy School (HKS)

Date Written: April 2007

Abstract

The purpose of this paper is to detect the presence of sophisticated economic motives behind individual concerns for privacy. Recent theories of privacy demands in commercial contexts have assumed an economically aware and sophisticated consumer, capable of evaluating the indirect consequences of information transmission. We present evidence, from a large-scale experiment evoking a realistic context, that privacy concerns are indeed sensitive to the indirect consequences of information transmission.

Suggested Citation

Wathieu, Luc and Friedman, Allan A., An Empirical Approach to Understanding Privacy Valuation (April 2007). HBS Marketing Research Paper No. 07-075. Available at SSRN: https://ssrn.com/abstract=982593 or http://dx.doi.org/10.2139/ssrn.982593

Luc Wathieu (Contact Author)

Georgetown University McDonough School of Business ( email )

3700 O Street, NW
Washington, DC 20057
United States

Allan A. Friedman

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

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