The privacy paradox: a challenge to decision theory?

Jacopo Arpetti () and Marco Delmastro
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Jacopo Arpetti: University of Rome Tor Vergata

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2021, vol. 48, issue 4, No 1, 505-525

Abstract: Abstract In the present research we propose a methodology—to our knowledge, the first attempt in this sense—that considers information asymmetries when the degree of privacy concerning individuals is detected. Such filtering (“privacy concerns” degree as a function of “data awareness” level) allows to highlight the individuals’ desired level of privacy—and related privacy concerns—analyzing whether individuals’ data disclosure decisions are taken consciously or as the result of a “blind” (unaware) choice, considering data gathering practices—related level of consciousness. Previous works may have been biased due to the lack of such observation. Our measurement has been conducted taking into account the individuals’ awareness with respect to data collection techniques performed by mobile applications in Italy. As a matter of fact, if individuals’ privacy preferences among consumers are not distributed in a uniform way, this results in socially regressive outcomes.

Keywords: Digital markets; Asymmetric information; Implicit transactions; Data regulation; Privacy preferences; Privacy paradox (search for similar items in EconPapers)
JEL-codes: D4 D52 D82 E71 L14 L5 L51 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s40812-021-00192-z

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