Economic Value of Data: Quantification Using Online Experiments

Avinash Collis (), Alex Moehring () and Ananya Sen ()
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Avinash Collis: The University of Texas at Austin
Alex Moehring: Massachusetts Institute of Technology
Ananya Sen: Carnegie Mellon University

No 20-13, Working Papers from NET Institute

Abstract: We conduct incentive compatible choice experiments to measure the economic value of social media data. We focus on the value that users place on their personal data related to the three biggest social media platforms: Facebook, Instagram and Twitter. We find that the median Willingness to Accept (WTA) of users for the entire ``stock'' of data for Facebook and Instagram is $300 each which is 20% higher than Twitter valued at $250. We use data valuations from a recent data breach settlement by Facebook to provide information interventions. We find that reducing these information frictions about the value of data can make users revise their valuations upwards. They do not reduce their valuation if the amount is less than their initial WTA. Finally, a framing which makes the users think about giving their data up immediately makes them value it much higher. We do not find a significant impact of a potential `present bias' in users' decisions, especially relative to the immediate data sharing intervention.

Keywords: value of data; choice experiments, privacy (search for similar items in EconPapers)
JEL-codes: O30 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2020-10
New Economics Papers: this item is included in nep-big and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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