Working Paper

Can users price real-time contextual information?

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

... The owner has to have an understanding of where her possessions begin and end. This precondition is perhaps one of the biggest challenges for the appropriation of personal data (Kamleitner, Dickert, and Haddadi 2016). Due to their mere scope and dynamic generation, no person could possibly keep track of every single data point that has been captured. ...
Chapter
Full-text available
In the age of information everything becomes mined for the nuggets giving rise to it: data. Yet, who these new treasures do and should belong to is still being hotly debated. With individuals often acting as the source of the ore and businesses acting as the miners, both appear to hold a claim. This chapter contributes to this debate by analyzing whether and when personal data may evoke a sense of ownership in those they are about. Juxtaposing insights on the experience and functions of ownership with the essence of data and practices in data markets, we conclude that a very large fraction of personal data defies the logic and mechanisms of psychological possessions. In the canon of reasons for this defeat, issues of data characteristics, obscuring market practices, and data’s mere scope are center stage. In response, we propose to condense the boundless collection of data points into the singularized and graspable metaphor of a digital blueprint of the self. This metaphor is suggested to grasp the notion of personal data. To also enable consumers to effectively manage their data, we advocate adopting a practice commonly used with plentiful assets: the establishment of personal data agents and managers.
Article
Full-text available
Construal level theory proposes that events that are temporally proximate are represented more concretely than events that are temporally distant. We tested this prediction using two large natural language text corpora. In study 1 we examined posts on Twitter that referenced the future, and found that tweets mentioning temporally proximate dates used more concrete words than those mentioning distant dates. In study 2 we obtained all New York Times articles that referenced U.S. presidential elections between 1987 and 2007. We found that the concreteness of the words in these articles increased with the temporal proximity to their corresponding election. Additionally the reduction in concreteness after the election was much greater than the increase in concreteness leading up to the election, though both changes in concreteness were well described by an exponential function. We replicated this finding with New York Times articles referencing US public holidays. Overall, our results provide strong support for the predictions of construal level theory, and additionally illustrate how large natural language datasets can be used to inform psychological theory.
Article
Full-text available
Research on large shared medical datasets and data-driven research are gaining fast momentum and provide major opportunities for improving health systems as well as individual care. Such Open Data can shed light on the causes of disease and effects of treatment including adverse reactions side-effects of treatments, while also facilitating analyses tailored to an individual individual’s characteristics, known as personalised or “stratified medicine”. Developments such as crowdsourcing, participatory surveillance, individuals pledging to became ‘data donors’ and the ‘quantified self’ movement (where citizens share data through mobile device-connected technologies) have great potential to contribute to our knowledge of disease, improving diagnostics and delivery of healthcare and treatment. However, alongside the clear potential, there are also concerns over privacy, confidentiality, and control of data about individuals once it is shared. Issues such as user trust, data privacy, transparency over the control of data ownership, and the implications of data analytics for personal privacy with potentially intrusive inferences are becoming increasingly scrutinised at national and international levels. This can be seen in the recent backlash over the proposed implementation of care.data, which enables individuals’ NHS data to be linked, retained, and shared for other uses, such as research and, more controversially, with businesses for commercial exploitation. By way of contrast, through increasing popularity of social media, GPS-enabled mobile apps and tracking/wearable devices, the IT industry and MedTech giants are pursuing new projects without clear public and policy discussion about ownership and responsibility for user-generated data. In the absence of transparent regulation this papers
Article
Full-text available
In the context of third-party social apps, the problem of interdependency of privacy refers to users making app adoption decisions which cause the collection and utilization of personal information of users’ friends. In contrast, users’ friends have typically little or no direct influence over these decision-making processes. We conduct a conjoint analysis study with two treatment conditions which vary the app data collection context (i.e., to which degree the functionality of the app makes it necessary for the app developer to collect friends’ information). Analyzing the data, we are able to quantify the monetary value which app users place on their friends’ and their own personal information in each context. Combining these valuations with the responses to a comprehensive survey, we apply structural equation modeling (SEM) analysis to investigate the roles of privacy concern, its antecedents, as well as app data collection context to work towards a model of interdependent privacy for the scenario of third-party social app adoption. We find that individuals’ past experiences regarding privacy invasions are negatively associated with their trust for third-party social apps’ proper handling of their personal information, which in turn influences their concerns for their own privacy associated with third-party social apps. In addition, positive effects of users’ privacy knowledge on concerns for their own privacy and concerns for friends’ privacy regarding app adoption are partially supported. These privacy concerns are further found to affect how users value their own and their friends’ personal information. However, we are unable to support an association between users’ online social capital and their concerns for friends’ privacy. Nor do we have enough evidence to show that treatment conditions moderate the association between the concern for friends’ personal information and the value of such information in app adoption contexts.
Article
Full-text available
This research examines the impact of nonconscious goal activation on investors’ feelings of psychological ownership of their investment choices. An initial experiment finds that psychological ownership is greater when an investment choice is incongruent with a nonconsciously-activated financial goal. Consistent with the notion that psychological ownership engenders self-enhancement motivation, ownership is also positively associated with word-of-mouth intentions. However, two additional experiments show that these effects are attenuated when an investor’s decision process focuses on deciding in the “right way” (versus focusing on making the “best choice”). Findings across all studies support an integrative perspective on theories of psychological ownership and regulatory engagement: When individuals overcome personal resistance by choosing an option that is incongruent with a nonconscious goal, they experience greater feelings of engagement, which in turn lead to enhanced feelings of psychological ownership of the chosen option and greater word-of-mouth intentions.
Article
Full-text available
The endowment effect is the tendency for people who own a good to value it more than people who do not. Its economic impact is consequential. It creates market inefficiencies and irregularities in valuation such as differences between buyers and sellers, reluctance to trade, and mere ownership effects. Traditionally, the endowment effect has been attributed to loss aversion causing sellers of a good to value it more than buyers. New theories and findings - some inconsistent with loss aversion - suggest evolutionary, strategic, and more basic cognitive origins. In an integrative review, we propose that all three major instantiations of the endowment effect are attributable to exogenously and endogenously induced cognitive frames that bias which information is accessible during valuation. Copyright © 2015 Elsevier Ltd. All rights reserved.
Article
Full-text available
Get free access to this article (limited): http://www.tandfonline.com/eprint/qcbHV6nmfuMZcWFD7TUj/full Imagery appeals are a powerful instrument in a communicator’s toolbox. Imagery allows evaluating an object prior to actual experience and simulating object ownership. This article investigates whether imagery and psychological ownership are systematically interlinked, thus causing objects to become “mine” through imagery. Across 2 studies, featuring 3 objects, 3 different types of advertisements, and based on more than 800 participants, this article supports a conceptual model that suggests that an inherent link between imagery and psychological ownership drives a varied set of consumer responses. Implications for marketers aiming to capitalize on the effects of imagery processing are derived. Use this link to get free access to this article (limited): http://www.tandfonline.com/eprint/qcbHV6nmfuMZcWFD7TUj/full
Conference Paper
Full-text available
Feedback about privacy-affecting system operations is impor- tant for informed end-user privacy management. While feed- back is most relevant if provided immediately, such delivery interrupts the user and risks disrupting ongoing tasks. The timing, volume, and nature of feedback is therefore critical for avoiding inopportune interruption. We varied the timing and actionability of feedback regarding accesses to a user’s physical location. We found that the sense of privacy viola- tion was heightened when feedback was immediate, but not actionable. While immediate and actionable feedback may sometimes be necessary, our findings suggest that moderately delayed feedback is often acceptable. A moderate delay may serve as a compromise to minimize interruption and avoid overly alarming reaction to immediate feedback. However, immediate and actionable feedback could still be beneficial when privacy sensitivity is high or ambiguous.
Article
Full-text available
Psychological ownership has emerged as an important predictor of workplace motivations, attitudes, and behaviors. While components of psychological ownership theory have been recently adapted to marketing contexts as well, much remains to be done. With a more comprehensive application and use of psychological ownership theory in marketing, additional understanding and explanation could be provided for many of the key phenomena, such as customer satisfaction, loyalty, word-of-mouth, and willingness to pay. In this article, we focus on individual psychological ownership– associated concepts and evidence with implications for research in marketing. Our work offers multiple avenues for future research focused on, but not limited to, marketing contexts.
Article
Full-text available
This article summarizes and draws connections among diverse streams of empirical and theoretical research on the economics of privacy. Our focus is on the economic value and consequences of privacy and of personal information, and on consumers' understanding of and decisions about the costs and benefits associated with data protection and data sharing. We highlight how the economic analysis of privacy evolved through the decades, as, together with progress in information technology, more nuanced issues associated with the protection and sharing of personal information arose. We use three themes to connect insights from the literature. First, there are theoretical and empirical situations where the protection of privacy can both enhance and detract from economic surplus and allocative efficiency. Second, consumers' ability to make informed decisions about their privacy is severely hindered, because most of the time they are in a position of imperfect information regarding when their data is collected, with what purposes, and with what consequences. Third, specific heuristics can profoundly influence privacy decision-making. We conclude by highlighting some of the ongoing issues in the privacy debate.
Article
Full-text available
Two dominant theoretical models for privacy – individual privacy preferences and context-dependent definitions of privacy – are often studied separately in information systems research. This paper unites these theories by examining how individual privacy preferences impact context-dependent privacy expectations. The paper theorizes that experience provides a bridge between individuals’ general privacy attitudes and nuanced contextual factors. This leads to the hypothesis that, when making judgments about privacy expectations, individuals with less experience in a context rely more on individual preferences such as their generalized privacy beliefs, whereas individuals with more experience in a context are influenced by contextual factors and norms. To test this hypothesis, 1,925 American users of mobile applications made judgments about whether varied real-world scenarios involving data collection and use met their privacy expectations. Analysis of the data suggests that experience using mobile applications did moderate the effect of individual preferences and contextual factors on privacy judgments. Experience changed the equation respondents used to assess whether data collection and use scenarios met their privacy expectations. Discovering the bridge between two dominant theoretical models enables future privacy research to consider both personal and contextual variables by taking differences in experience into account.
Article
Full-text available
Modern smartphone operating systems (OSs) have been developed with a greater emphasis on security and protecting privacy. One of the mechanisms these systems use to protect users is a permission system, which requires developers to declare what sensitive resources their applications will use, has users agree with this request when they install the application and constrains the application to the requested resources during runtime. As these permission systems become more common, questions have risen about their design and implementation. In this paper, we perform an analysis of the permission system of the Android smartphone OS in an attempt to begin answering some of these questions. Because the documentation of Android's permission system is incomplete and because we wanted to be able to analyze several versions of Android, we developed PScout, a tool that extracts the permission specification from the Android OS source code using static analysis. PScout overcomes several challenges, such as scalability due to Android's 3.4 million line code base, accounting for permission enforcement across processes due to Android's use of IPC, and abstracting Android's diverse permission checking mechanisms into a single primitive for analysis. We use PScout to analyze 4 versions of Android spanning version 2.2 up to the recently released Android 4.0. Our main findings are that while Android has over 75 permissions, there is little redundancy in the permission specification. However, if applications could be constrained to only use documented APIs, then about 22% of the non-system permissions are actually unnecessary. Finally, we find that a trade-off exists between enabling least-privilege security with fine-grained permissions and maintaining stability of the permission specification as the Android OS evolves.
Article
Full-text available
The problem of online privacy is often reduced to individual decisions to hide or reveal personal information in online social networks (OSNs). However, with the increasing use of OSNs, it becomes more important to understand the role of the social network in disclosing personal information that a user has not revealed voluntarily: How much of our private information do our friends disclose about us, and how much of our privacy is lost simply because of online social interaction? Without strong technical effort, an OSN may be able to exploit the assortativity of human private features, this way constructing shadow profiles with information that users chose not to share. Furthermore, because many users share their phone and email contact lists, this allows an OSN to create full shadow profiles for people who do not even have an account for this OSN. We empirically test the feasibility of constructing shadow profiles of sexual orientation for users and non-users, using data from more than 3 Million accounts of a single OSN. We quantify a lower bound for the predictive power derived from the social network of a user, to demonstrate how the predictability of sexual orientation increases with the size of this network and the tendency to share personal information. This allows us to define a privacy leak factor that links individual privacy loss with the decision of other individuals to disclose information. Our statistical analysis reveals that some individuals are at a higher risk of privacy loss, as prediction accuracy increases for users with a larger and more homogeneous first- and second-order neighborhood of their social network. While we do not provide evidence that shadow profiles exist at all, our results show that disclosing of private information is not restricted to an individual choice, but becomes a collective decision that has implications for policy and privacy regulation.
Conference Paper
Full-text available
Privacy risks have been addressed through technical solutions such as Privacy-Enhancing Technologies (PETs) as well as regulatory measures including Do Not Track. These approaches are inherently limited as they are grounded in the paradigm of a rational end user who can determine, articulate, and manage consistent privacy preferences. This assumes that self-serving efforts to enact privacy preferences lead to socially optimal outcomes with regard to information sharing. We argue that this assumption typically does not hold true. Consequently, solutions to specific risks are developed - even mandated - without effective reduction in the overall harm of privacy breaches. We present a systematic framework to examine these limitations of current technical and policy solutions. To address the shortcomings of existing privacy solutions, we argue for considering information sharing to be transactions within a community. Outcomes of privacy management can be improved at a lower overall cost if peers, as a community, are empowered by appropriate technical and policy mechanisms. Designing for a community requires encouraging dialogue, enabling transparency, and supporting enforcement of community norms. We describe how peer production of privacy is possible through PETs that are grounded in the notion of information as a common-pool resource subject to community governance.
Article
Full-text available
The discrepancy between willingness to pay (WTP) and willingness to accept (WTA) for a product, referred to as the endowment effect, has been investigated and replicated across various domains because of its implications for rational decision making. The authors assume that implicit processes operate in the endowment effect and propose an explanation that is derived from the two main accounts of the effect, ownership and loss aversion. Based on the implicit egotism and self-affirmation literatures, the model argues that selling is perceived as an implicit self-threat and that sellers, as a part of their automatic defense mechanism, respond to this self-threat by enhancing the value of the self-associated object. Five studies test these conjectures and provide support for the proposed model.
Data
Full-text available
a b s t r a c t Scope insensitivity is a popular anomaly in many valuation studies. Although scope insen-sitivity is a problem that may be present in any valuation method, most previous literature has focused on evaluating scope sensitivity within the context of contingent valuation applications. Nevertheless, it is necessary to understand the demand-revealing properties of experimental auctions since they are increasingly used to value products, such as quasi-public goods. In this paper, we test explicitly whether estimates coming from experimental auctions may pass a scope test. We conduct experimental auctions on products with a sub-set of attributes (part) and a comprehensive set of attributes (whole) related to animal wel-fare using two multi-product auction approaches: sequential and simultaneous. Results show that estimates pass the scope test when multi-product auctions are conducted simul-taneously but not when they are conducted sequentially for all valued products. Implica-tions of these findings are discussed. Ó 2013 The Authors. Published by Elsevier B.V. All rights reserved.
Article
Full-text available
The solicitation of charitable donations costs billions of dollars annually. Here, we introduce a virtually costless method for boosting charitable donations to a group of needy persons: merely asking donors to indicate a hypothetical amount for helping one of the needy persons before asking donors to decide how much to donate for all of the needy persons. We demonstrated, in both real fund-raisers and scenario-based research, that this simple unit-asking method greatly increases donations for the group of needy persons. Different from phenomena such as the foot-in-the-door and identifiable-victim effects, the unit-asking effect arises because donors are initially scope insensitive and subsequently scope consistent. The method applies to both traditional paper-based fund-raisers and increasingly popular Web-based fund-raisers and has implications for domains other than fund-raisers, such as auctions and budget proposals. Our research suggests that a subtle manipulation based on psychological science can generate a substantial effect in real life.
Article
Full-text available
Decisions often involve trade-offs between a more normative option and a less normative but more tempting one. The authors propose that the intrapersonal conflict that is evoked by choices involving incompatible goals can be resolved through scope-insensitive justifications. The authors describe one such mechanism, the "mere token" effect, a new phenomenon in decision making. They demonstrate that adding a certain and immediate mere token amount to both options increases choices of the later-larger option in intertemporal choice and of the riskier-larger option in risky choice. The authors find this effect to be scope insensitive, such that the size of the token amount does not moderate the effect. They show that intrapersonal choice conflict underlies the mere token effect and that reducing the degree of conflict by increasing the psychological distance to the choice outcomes debiases the effect. Moreover, they show that the mere token effect is enhanced when (1) opposing goals in choice are made salient and (2) the choice options represent a starker contrast that generates greater conflict. The authors empirically rule out alternative explanations, including diminishing marginal utility, normative and descriptive utility-based models, liquidity constraints, and naive diversification. They discuss the direct implications of the mere token effect for the marketing of financial services and, more generally, for consumer preference toward bundles and multiattribute products.
Article
Full-text available
This research proposes that the concept of emotional attachment, and specifically the independent constructs of psychological ownership and affective reaction, can help explain many of the endowment effect findings documented in the literature. We define these constructs and then test them across a set of nine studies in which we both replicate previous and generate new endowment effect findings, and then show that psychological ownership and affective reaction can mediate the effects. In doing so, we offer direct empirical support for the idea of emotional attachment as a driver of loss aversion while also providing practitioners and future endowment effect researchers with new insights about the psychological processes that underlie the endowment effect.
Article
Full-text available
Recent experimental evidence has pro- vided strong support for Daniel Kahneman and Amos Tversky's (1979) notion of loss aversion: that losses are valued more highly than gains. This experimental evidence (see e.g., Jack L. Knetsch and John A. Sinden, 1984; Donald L. Coursey et al., 1987; Knetsch, 1989; Kahneman et al., 1990) sug- gests that the disparity between willingness to accept compensation to give something up (WTA) exceeds willingness to pay to obtain the same thing (WTP) by a factor of about two. However, field studies of the value of environmental goods have shown disparities between WTA and WTP of fac- tors from two to more than ten (for a summary of these studies see Ronald G. Cummings et al. (1986)). These results raise the question of the source of differing amounts of loss aversion for different com- modities. Several explanations for loss aversion, manifested in a large disparity between WTA and WTP, are available. First, Kahneman and Tversky (1979) argue that people view losses differently from gains in that losses are associated with pain and gains with pleasure, two inherently different psychological phenomena. Second, Michael W. Hanemann (1991) shows, using standard utility theory, that Robert D. Willig's (1976) demonstration that WTA and WTP should be similar can fail for public goods, for which substitutes do not exist. Although Hanemann's work cannot explain the ob- served laboratory experimental disparities, all of which were obtained for private goods, it may well help explain the large disparities observed for environmental commodities, many of which have few available substi- tutes. We investigate a third explanation, which arises from environmental economics: the notion that existence or intrinsic values may be important for environmental commodi- ties (John V. Krutilla, 1967). In other words, individuals may want to preserve a natural resource for moral or other motives even if they know that they will never receive direct consumption benefits (use value) from it.
Article
Full-text available
We investigate individuals' valuations of privacy using field and lab experiments. We find that privacy valuations are inconsistent and highly dependent on subtle framing. Specifically, we find evidence of a dichotomy between "willingness to pay" and "willingness to accept" for privacy: Individuals assign radically different values to the protection of their data, depending on whether they consider the amount of money they would accept to disclose otherwise private information, or the amount of money they would pay to protect otherwise public information. These results suggest that the value of privacy, while not entirely arbitrary, is highly malleable and sensitive to non-normative factors. Therefore, they raise doubts about individuals' ability to optimally negotiate issues of privacy in modern information societies.
Conference Paper
Full-text available
In the age of Web 2.0 users contribute to platforms success by providing personal information by actively uploading information (e.g., messages, preferences, biographies) and also by leaving traces of their online behaviour as can be derived from their clicks, navigation paths, etc. While there is a market for trading such information among companies, there is little knowledge about how users actually value their personal information. In an online survey-based experiment we have asked 1,045 Facebook users how much they would be willing to pay for keeping their personal information. Surprisingly, 48.1 percent of participants are not willing to pay a single Euro, thus, valuing their information at zero. Results indicate that people that show ‘spamming’ behaviour and users that use Facebook for ‘diary keeping’ are significantly more willing to pay a certain amount higher than zero to be able to keep their personal Facebook information. Interestingly, having analysed various kinds of user behaviour, the regression model still explains no more than 14.2 percent of variance. Additionally, this article discusses four different method manipulations for eliciting people’s willingness to pay for personal information and provides methodical guidance for future research in the field.
Article
This paper argues that it is an illusion to suppose that data protection regimes, in Europe and elsewhere, need not deal with the issue of property rights in personal data. Building on the work of John Umbeck, it is clear that, if property rights are not assigned by a legislative action, personal data will be appropriated in proportion to the de facto power of the data market participants to exclude others. It follows that, so long as personal data bears high economic value, the real question is not whether there should be property rights in personal data but whose rights they should be. The paper offers a new perspective on the nature of personal data as a resource, presenting it as a system resource comprising not merely individual pieces of information pertaining to identifiable individuals, but an entire ‘ecosystem’. So viewed, it can be seen that personal data is actually a rivalrous resource, thereby refuting one of the core grounds on which many of the anti-propertization arguments are built. Amongst the conclusions to be drawn from this analysis, the Proposal for a new data protection regulation in Europe can be criticized as a missed opportunity not only to strengthen the position of individuals against the Information Industry but also to open a public debate about the uses to which personal data are put.
Article
Rights have been long understood, first and foremost, as protection of the private from the public, the individual from the State. True, we also recognize positive rights (such as socioeconomic rights) and the government’s duty to protect citizens from violations of rights by other actors besides the State. However, when violations of privacy are discussed, the first violator that typically comes to mind is “Big Brother” — that is, the State. This Article focuses on the growing threat to privacy from private actors, specifically profit-making corporations. It briefly outlines a range of options aimed at protecting individual privacy against encroachment by private actors, and it evaluates them within the prevailing normative, legal, and political context in the United States.
Conference Paper
Most online service providers offer free services to users and in part, these services collect and monetize personally identifiable information (PII), primarily via targeted advertisements. Against this backdrop of economic exploitation of PII, it is vital to understand the value that users put to their own PII. Although studies have tried to discover how users value their privacy, little is known about how users value their PII while browsing, or the exploitation of their PII. Extracting valuations of PII from users is non-trivial - surveys cannot be relied on as they do not gather information of the context where PII is being released, thus reducing validity of answers. In this work, we rely on refined Experience Sampling - a data collection method that probes users to valuate their PII at the time and place where it was generated in order to minimize retrospective recall and hence increase measurement validity. For obtaining an honest valuation of PII, we use a reverse second price auction. We developed a web browser plugin and had 168 users - living in Spain - install and use this plugin for 2 weeks in order to extract valuations of PII in different contexts. We found that users value items of their online browsing history for about ∈7 (~10USD), and they give higher valuations to their offline PII, such as age and address (about 25∈ or ~36USD). When it comes to PII shared in specific online services, users value information pertaining to financial transactions and social network interactions more than activities like search and shopping. No significant distinction was found between valuations of different quantities of PII (e.g. one vs. 10 search keywords), but deviation was found between types of PII (e.g. photos vs. keywords). Finally, the users' preferred goods for exchanging their PII included money and improvements in service, followed by getting more free services and targeted advertisements.
Article
In many types of information systems, users face an implicit tradeoff between disclosing personal information and receiving benefits, such as discounts by an electronic commerce service that requires users to divulge some personal information. While these benefits are relatively measurable, the value of privacy involved in disclosing the information is much less tangible, making it hard to design and evaluate information systems that manage personal information. Meanwhile, existing methods to assess and measure the value of privacy, such as self-reported questionnaires, are notoriously unrelated of real–world behavior. To overcome this obstacle, we propose a methodology called VOPE (Value of Privacy Estimator), which relies on behavioral economics' Prospect Theory (Kahneman & Tversky, 1979) and valuates people's privacy preferences in information disclosure scenarios. VOPE is based on an iterative and responsive methodology in which users take or leave a transaction that includes a component of information disclosure. To evaluate the method, we conduct an empirical experiment (n = 195), estimating people's privacy valuations in electronic commerce transactions. We report on the convergence of estimations and validate our results by comparing the values to theoretical projections of existing results (Tsai, Egelman, Cranor, & Acquisti, 2011), and to another independent experiment that required participants to rank the sensitivity of information disclosure transactions. Finally, we discuss how information systems designers and regulators can use VOPE to create and to oversee systems that balance privacy and utility.
Article
Analysts, investors and entrepreneurs have recognized the value of personal data for Internet economics. Personal data is viewed as ‘the oil’ of the digital economy. Yet, ordinary people are barely aware of this. Marketers collect personal data at minimal cost in exchange for free services. But will this be possible in the long term, especially in the face of privacy concerns? Little is known about how users really value their personal data. In this paper, we build a user-centered value theory for personal data. On the basis of a survey experiment with 1269 Facebook users, we identify core constructs that drive the value of volunteered personal data. We find that privacy concerns are less influential than expected and influence data value mainly when people become aware of data markets. In fact, the consciousness of data being a tradable asset is the single most influential factor driving willingness-to-pay for data. Furthermore, we find that people build a sense of psychological ownership for their data and hence value it more. Finally, our value theory helps to unveil market design mechanisms that will influence how personal data markets thrive: First, we observe a majority of users become reactant if they are consciously deprived of control over their personal data; many drop out of the market. We therefore advice companies to consider user-centered data control tools to have them participate in personal data markets. Second, we find that in order to create scarcity in the market, centralized IT architectures (reducing multiple data copies) may be beneficial.
Conference Paper
Human Data Interaction (HDI) is an emerging field of research that seeks to support end-users in the day-to-day management of their personal digital data. This is a programmatic paper that seeks to elaborate foundational challenges that face HDI from an interactional perspective. It is rooted in and reflects foundational lessons from social studies of science that have had a formative impact on CSCW, and core challenges involved in supporting interaction/collaboration from within the field of CSCW itself. These are drawn upon to elaborate the inherently social and relational character of data and the challenges this poses for the ongoing development of HDI, particularly with respect to the ‘articulation’ of personal data. Our aim in doing this is not to present solutions to the challenges of HDI but to articulate core problems that confront this fledgling field as it moves from nascent concept to find a place in the interactional milieu of everyday life and particular research challenges that accompany it.
Article
In-process promotions focus on promotional activities during marketing events such as auctions, crowdfunding, or fund-raising. Firms can observe consumers’ responses to these promotions and use this information to adjust future promotions sent during the same events. The authors study the impact of promotions on market outcomes and focus on one use of such promotions: messages sent during online auctions, in which the outcome is the final auction price. They propose that the effect of these messages can be understood by observing their aggregate impact on final auction prices and by examining how messages affect behaviors at the bid level, namely, new-bidder entry and jump bidding. These bid-level behaviors can, when summed at the auction level, affect auction prices. Besides examining the messages’ impact on bidder behavior, the authors study the auctioneer’s strategy in issuing these messages. They distinguish between informative messages, which focus on product attributes, and persuasive messages, which try to motivate the message recipients to bid. They test hypotheses derived from their framework using data from online auctions of Air France airline tickets. The authors also conduct “what-if” simulations to help auctioneers identify the optimal number of messages to send during an auction.
Article
Psychological ownership as a phenomenon and construct attracts an increasing number of scholars in a variety of fields. This volume presents a comprehensive and up-to-date review of the psychological ownership literature with particular attention paid to the theory, research evidence, and comments on managerial applications.
Article
Even though negative aspects of making use of other’s work, such as illegal appropriation, have been found in online communities, remixing is considered a type of constructive creation for generating and recreating creative works. To make constructive creation via remixing sustainable, it is critical for users to share their own creations and allow others to use them in these online communities. We propose psychological ownership and social recognition as key antecedents for original creators to increase their intention to share their works in an online remix context. In this study, we aim to examine the relationships between intention to share, psychological ownership, and social recognition.
Article
Existing research on information privacy has mostly relied on the privacy calculus model, which views privacy-related decision-making as a rational process where individuals weigh the anticipated risks of disclosing personal data against the potential benefits. In this research, we develop an extension to the privacy calculus model, arguing that the situation-specific assessment of risks and benefits is bounded by (1) pre-existing attitudes or dispositions, such as general privacy concerns or general institutional trust, and (2) limited cognitive resources and heuristic thinking. An experimental study, employing two samples from the USA and Switzerland, examined consumer responses to a new smartphone application that collects driving behavior data and provided converging support for these predictions. Specifically, the results revealed that a situation-specific assessment of risks and benefits fully mediates the effect of dispositional factors on information disclosure. In addition, the results showed that privacy assessment is influenced by momentary affective states, indicating that consumers underestimate the risks of information disclosure when confronted with a user interface that elicits positive affect.
Article
The endowment effect appears to be much stronger in markets for environmental goods that are not usually monetized than in traditional markets. This study explored the effect in another non-traditional market: the dating market. In Experiment 1, participants were asked either for a buying or selling price for the contact information of each of 10 dates. The WTA/WTP ratios within this market were higher than in traditional markets and, unexpectedly, much higher for women than for men, with an average ratio of 9.37 and 2.70, respectively. Experiment 2 replicated this result and found in a within-subject design the usual WTA/WTP ratio for coffee mugs. The paper concludes with a discussion of differences between traditional and non-traditional markets, with a special emphasis on the dating market.
Article
This Review summarizes and draws connections between diverse streams of empirical research on privacy behavior. We use three themes to connect insights from social and behavioral sciences: people's uncertainty about the consequences of privacy-related behaviors and their own preferences over those consequences; the context-dependence of people's concern, or lack thereof, about privacy; and the degree to which privacy concerns are malleable—manipulable by commercial and governmental interests. Organizing our discussion by these themes, we offer observations concerning the role of public policy in the protection of privacy in the information age. Copyright © 2015, American Association for the Advancement of Science.
Conference Paper
Real-Time Bidding (RTB) and Cookie Matching (CM) are transforming the advertising landscape to an extremely dynamic market and make targeted advertising considerably permissive. The emergence of these technologies allows companies to exchange user data as a product and therefore raises important concerns from privacy perspectives. In this paper, we perform a privacy analysis of CM and RTB and quantify the leakage of users' browsing histories due to these mechanisms. We study this problem on a corpus of users' Web histories, and show that using these technologies, certain companies can significantly improve their tracking and profiling capabilities. We detect $41$ companies serving ads via RTB and over $125$ using Cookie Matching. We show that $91\%$ of users in our dataset were affected by CM and in certain cases, $27\%$ of users' Web browsing histories could be leaked to 3rd-party companies through RTB. We expose a design characteristic of RTB systems to observe the prices which advertisers pay for serving ads to Web users. We leverage this feature and provide important insights into these prices by analyzing different user profiles and visiting contexts. Our study shows the variation of prices according to context information including visiting site, time and user's physical location. We experimentally confirm that users with known Web browsing history are evaluated higher than new comers, that some user profiles are more valuable than others, and that users' intents, such as looking for a commercial product, are sold at higher prices than users' Web browsing histories. In addition, we show that there is a huge gap between users' perception of the value of their personal information and its actual value on the market. A recent study by Carrascal et al. showed that, on average, users evaluate the price of the disclosure of their presence on a Web site to EUR 7. We show that user's Web browsing history elements are routinely being sold off for less than $\$0.0005$.
Article
Social Media and Web 2.0 tools have dramatically increased the amount of previously private data that users share on the Web; now with the advent of GPS-enabled smartphones users are also actively sharing their location data through a variety of applications and services. Existing research has explored people's privacy attitudes, and shown that the way people trade their personal data for services of value can be inconsistent with their stated privacy preferences (a phenomenon known as the privacy paradox). In this paper we present a study into privacy and location sharing, using quantitative analysis to show the presence of the paradox, and qualitative analysis in order to reveal the factors that lie behind it. Our analysis indicates that privacy decision-making can be seen as a process of structuration, in that people do not make location-sharing decisions as entirely free agents and are instead heavily influenced by contextual factors (external structures) during trade-off decisions. Collectively these decisions may themselves become new structures influencing future decisions. Our work has important consequences both for the understanding of how users arrive at privacy decisions, and also for the potential design of privacy systems.
Article
In previous privacy studies, consumers have reported their unease with online retailers that collect a lot of personal data. Consumers claim they will switch to alternative providers or cancel transactions if data collection is deemed excessive. Therefore, privacy appears to be a competitive factor in electronic commerce. This paper describes a study which quantifies the degree to which privacy is a competitive advantage for online retailers. In an experiment, we offered 225 participants the option to purchase one DVD from one of two online stores. Throughout the study, one online shop asked for more invasive personal data—as confirmed by an exit-questionnaire. In the test treatment, the privacy-invasive store sold DVDs for one Euro less than the other, and in the control treatment, both stores sold DVDs for the same price. Across both treatments, 74 participants made a purchase and had the DVD they bought delivered. In our study we found that, when the price of DVDs was the same between both stores, the shop asking for less personal data did not amass the entire market. When consumers were offered a trade-off between price and privacy, the vast majority of customers chose to buy from the cheaper, more privacy-invasive, firm; this firm got both a larger market share and higher revenue. The cheaper shop generated strong dissatisfaction with their privacy practises; in contrast, consumers of the more expensive store displayed only weak dissatisfaction with price. We established the validity of our analysis by checking users made informed choices, and did not select one firm over the other due to hasty decision-making or ordering effects. We found no support for either a materialistic lifestyle nor the quest for immediate gratification as to why customers chose the cheaper but privacy-unfriendly store.
Article
Approximately 20 years ago, Peter Diamond and I wrote an article for this journal analyzing contingent valuation methods. At that time Peter's view was contingent valuation was hopeless, while I was dubious but somewhat more optimistic. But 20 years later, after millions of dollars of largely govemment-research, 1 have concluded that Peter's earlier position was correct and that contingent valuation is hopeless. In this paper; I selectively review the continc valuation literature, focusing on empirical results. I find that three long-standing problems continue to exist: 1) hypothetical response bias that leads contingent valuation to overstatements of value; 2) large differences between willingness to pay and willingness to accept; and 3) the embedding problen which encompasses scope problems. The problems of embedding and scope are likely to be the most intractable, indeed, I believe that respondents to contingent valuation surveys are often not responding out of stable or well-defined preferences, but are essentially inventing their answers on the fly, in a which makes the resulting data useless for serious analysis. Finally, I offer a case study of a prominent contingent valuation study done by recognized exp in this approach, a study that should be only minimally affected by these concerns but in which the answers of respondents to the survey are implausible inconsistent.
Article
Adding to the current debate, this article focuses on the personal data and privacy challenges posed by private industry's use of smart mobile devices that provide location-based services to users and consumers. Directly relevant to personal data protection are valid concerns about the collection, retention, use and accessibility of this kind of personal data, in relation to which a key issue is whether valid consent is ever obtained from users. While it is indisputable that geo-location technologies serve important functions, their potential use for surveillance and invasion of privacy should not be overlooked. Thus, in this study we address the question of how a legal regime can ensure the proper functionality of geo-location technologies while preventing their misuse. In doing so, we examine whether information gathered from geo-location technologies is a form of personal data, how it is related to privacy and whether current legal protection mechanisms are adequate. We argue that geo-location data are indeed a type of personal data. Not only is this kind of data related to an identified or identifiable person, it can reveal also core biographical personal data. What is needed is the strengthening of the existing law that protects personal data (including location data), and a flexible legal response that can incorporate the ever-evolving and unknown advances in technology.
Article
The debate about online privacy gives testimony of Web users' concerns. Privacy concerns make consumers adopt data protection features, guide their appreciation for existing features, and can steer their consumption choices amongst competing businesses. However, approaches to measure privacy concern are fragmented and often ad-hoc, at the detriment of reliable results. The need for measurement instruments for privacy concern is twofold. First, attitudes and opinions about data protection cannot be established and compared without reliable mechanisms. Second, behavioural studies, notably in technology acceptance and the behavioural economics of privacy require measures for concern as a moderating factor. In its first part, this paper provides a comprehensive review of existing survey instruments for measuring privacy concerns. The second part focuses on revealed preferences that can be used for opportunistically measuring privacy concerns in the wild or for scale validation. Recommendations for scale selection and reuse are provided.
Article
As mouse-driven desktop computers give way to touchpad laptops and touchscreen tablets, the role of touch in online consumer behavior has become increasingly important. This work presents initial explorations into the effects of varying touch-based interfaces on consumers, and argues that research into the interfaces used to access content can be as important as research into the content itself. Two laboratory studies using a variety of touch technologies explore how touchscreen interfaces can increase perceived psychological ownership, and this in turn magnifies the endowment effect. Touch interfaces also interact with importance of product haptics and actual interface ownership in their effects on perceived product ownership, with stronger effects for products high in haptic importance and interfaces that are owned. Results highlight that perceptions of online products and marketing activities are filtered through the lens of the interfaces used to explore them, and touch-based devices like tablets can lead to higher product valuations when compared to traditional computers.
Article
Offers of free services abound on the Internet. But the focus on the price rather than on the cost of free services has led consumers into a position of vulnerability. For example, even though internet users typically exchange personal information for the opportunity to use these purportedly free services, one court has found that users of free services are not consumers for purposes of California consumer protection law. This holding reflects the common misconception that the costs of free online transactions are negligible-when in fact true costs may be quite significant. To elucidate the true costs of these allegedly free services, we apply a transaction cost economics (TCE) approach. Unlike orthodox economic theory, TCE provides a framework for analyzing exchanges in which the price of the product seems to be zero. Under a TCE analysis, we argue that information-intensive companies misuse the term "free" to promote products and services that involve numerous nonpecuniary costs. In so doing, firms generate contractual hazards for consumers, ignore consumer preferences for privacy, and mislead consumers by creating the impression that a given transaction will be free.
Article
Psychologically distant things are those that are not present in the direct experience of reality. There are different reasons for things not to be present in the immediate reality experienced by me. Things may belong to the past or to the future (e.g., my first year of marriage, my first year of school), to spatially remote locations (e.g., my parents' house, the North Pole), to other people (the way my best friend or a person from another culture perceives the present situation), and to hypothetical alternatives to reality, what could or might have been but never materialized (e.g., had I married another person or had I had wings). These alternatives to the directly experienced reality define, respectively, four dimensions of psychological distances--temporal distance, spatial distance, social distance, and hypotheticality. In each pair of examples of distal things, the first example is more proximal than the second. We would like to propose that in relation to psychological distance, these various distance dimensions are anchored on a single starting point (zero distance point), which is my direct experience of the here and now. Anything else--other times, other places, experiences of other people, and hypothetical alternatives to reality--is a mental construct. This analysis suggests a basic relationship between psychological distance and construal; that is, any distancing (i.e., moving beyond direct experience) involves construal. Based on construal-level theory, we distinguish between extents (levels) of construal and propose that more distal entities, which are more remote from direct experience, are construed on a higher level (i.e., involve more construal). The second section of this chapter discusses in more detail the concept of level of construal and the association between level of construal and psychological distance. That section addresses two implications of this association, namely, that psychological distance would produce higher levels of construal and that, conversely, high levels of construal would enhance perceived distance. The third section examines the effects of psychological distance on confidence in prediction, intensity of affective reactions, and evaluation and choice. We present evidence suggesting that the effects of various distance dimensions are similar to each other and are mediated by level of construal. The fourth section further proposes that the different psychological distances are interrelated and to some extent interchangeable. That is, distancing an object on one dimension may be exchanged for distancing the object on another dimension. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
The construct collective psychological ownership is introduced. Reflecting the psychology of “us” and “ours,” collective psychological ownership emerges through interactive dynamics whereby individuals come to a single and shared mind-set as it relates to a sense of ownership for a particular object. After providing a conceptual definition for the construct, we turn our attention to a detailed elaboration of the construct, offering comments on its genesis, emergent context, underlying motives, and a discussion of what can and cannot be owned. We also provide a discussion of the dynamics associated with its formation, highlighting the paths down which groups travel that influence the emergence of this psychological state. Next, we turn our attention to the emergence of collective psychological ownership within the organizational and teamwork context paying particular attention to the role of work environment structure. We conclude with a discussion of a set of work-related attitudinal, motivational, behavioral, and stress-related outcomes that stem from this psychological state. Copyright © 2009 John Wiley & Sons, Ltd.