Lecture 11 Flashcards
(22 cards)
What are the three central questions of Lecture 11?
1) Do consumers value privacy? 2) What is the privacy paradox? 3) What explains the paradox?
How do consumers show they value privacy?
Through surveys, field studies, and experiments indicating concerns and willingness to pay for privacy.
What are the top concerns about online privacy?
Identity theft, access to financial accounts, and being located in real life.
What experimental findings support privacy valuation?
Higher WTP for anonymous products, preference for private vouchers, $750 median valuation of Facebook data.
What is the privacy paradox?
The disconnect between stated privacy concerns and actual behaviors.
What did Chen et al. (WP) find about the paradox?
Even privacy-concerned users used many mini-programs, confirming paradox.
How do different measures explain the privacy paradox?
Survey responses and observed behaviors often refer to different contexts, making discrepancy expected.
What role do data externalities play in privacy behavior?
Even if privacy is valued, sharing can still occur if others’ behavior makes one’s data indirectly useful.
What is digital resignation?
Consumers accept lack of control over their data, leading to passive behavior despite concern.
Why is cost-benefit analysis difficult in privacy decisions?
Uncertainty about data use, lack of alternatives, and intangible costs make rational calculation hard.
How do high perceived benefits affect privacy behavior?
Consumers may still share data because digital services fulfill psychological or social needs.
How does context influence privacy behavior?
Environmental cues, platform type, and presentation affect willingness to disclose.
What is the endowment effect in privacy?
People value privacy more once they have it, leading to asymmetry in WTP vs. WTA.
How do relative standards affect privacy decisions?
Behavior of others or order of questions influences what individuals are willing to disclose.
What role do default options play in privacy?
They serve as norms and can increase or decrease disclosure depending on settings.
What is the control illusion in privacy settings?
Feeling in control increases willingness to disclose, even if the control is illusory.
What is present bias in the context of privacy?
Consumers overvalue short-term convenience and gratification, leading to oversharing.
How does intuition fail for digital privacy?
Digital threats lack sensory triggers, making intuitive responses ineffective.
How do people learn privacy preferences?
Through experience—exposure to risk or violation leads to more protective behaviors.
What did Debatin et al. (2009) and Jia et al. (2015) find?
Real exposure to privacy threats increases protective behavior more than observing others.
What are the two categories of explanations for the privacy paradox?
Non-behavioral (e.g. externalities, uncertainty) and behavioral (e.g. biases, default settings).
Do consumers truly care about privacy?
Yes, but behavior is shaped by context, uncertainty, resignation, and behavioral biases.
