The Value of Online Information Privacy: An Empirical Investigation

Il-Horn Hann (), Kai-Lung Hui, Sang-Yong Tom Lee and Ivan Png

Industrial Organization from University Library of Munich, Germany

Abstract: Concern over online information privacy is widespread and rising. However, prior research is silent about the value of information privacy in the presence of potential benefits from sharing personally identifiable information. We analyzed individuals' trade-offs between the benefits and costs of providing personal information to websites. We found that benefits - monetary reward and future convenience - significantly affect individuals' preferences over websites with differing privacy policies. We also quantified the value of website privacy protection. Among U.S. subjects, protection against errors, improper access, and secondary use of personal information is worth US$30.49 - 44.62. Finally, we identified three distinct segments of Internet consumers - privacy guardians, information sellers, and convenience seekers.

Keywords: Information privacy; conjoint analysis; cost-benefit tradeoff; privacy concern; monetary reward; time-saving service (search for similar items in EconPapers)
JEL-codes: D12 D61 D78 L50 L51 M21 M31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2003-04-01, Revised 2003-04-01
New Economics Papers: this item is included in nep-net
Note: Type of Document - PDF; prepared on Windows XP; pages: 29; figures: included
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpio:0304001

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