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Paying with your data. Privacy tradeoffs in ride-hailing services

Michał Paliński

Applied Economics Letters, 2022, vol. 29, issue 18, 1719-1725

Abstract: We carried out a discrete choice experiment to test users’ readiness to co-finance a ride-hailing service using their personal data. We designed an experiment in which respondents were asked to choose between a regular service and hypothetical app-based taxi rides offering discounts in exchange for respondents consenting to their personal data being shared. Our analysis compared how awareness of rights stemming from the GDPR affects respondents’ privacy preferences. Cross-group analysis indicated that reminding users about their rights stemming from the GDPR significantly increases the value they ascribe to protection of personal data. The results of WTA analysis suggest that there is a market for ‘pay with your data’ business models.

Date: 2022
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DOI: 10.1080/13504851.2021.1959891

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