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DTSTAMP:20260513T165407Z
UID:https://www.econ.mpg.de/events/15660/13681
DTSTART:20180404T150000Z
CLASS:PUBLIC
CREATED:20181008T083527Z
DESCRIPTION:The development of effective privacy policies rests critically 
 on the question of whether people are capable of engaging in rational trad
 eoffs regarding the use of their personal information. This study investig
 ates the extent to which people's decisions in this domain exhibit consist
 ency with an underlying rational preference for privacy. We develop a nove
 l experiment in which people allocate privacy levels between different per
 sonal information items\, allowing us to classify people depending on whet
 her their choices are consistent with the Generalized Axiom of Revealed Pr
 eference. We find 63 percent of subjects act consistently with a rational 
 preference ordering when allocating privacy levels\, despite the substanti
 al heterogeneity of privacy attitudes. We further investigate the extent t
 o which these revealed privacy preferences can be measured by monetary equ
 ivalents and whether preferences elicited over choices in our experiment h
 ave any predictive power for explaining real-world privacy behavior. We fi
 nd that the classification of rationality from choices is also predictive 
 of monetary tradeoffs: irrational types\, on average\, squander 260 percen
 t more money than rational types through inconsistencies in their monetary
  valuations. Despite the presence of noise\, monetary valuations neverthel
 ess capture some of the underlying privacy preferences\, as more private t
 ypes require significantly more compensation for sharing personal data. Fi
 nally\, the measures of privacy preferences elicited in the laboratory are
  correlated with a widely-used question eliciting self-reported privacy co
 ncerns and with behavioral outcomes in real-world domains of personal info
 rmation sharing. We conclude that\, despite the fact that we study choices
  in a fairly simple decision environment\, there is considerable heterogen
 eity in rationality that should be considered when designing future privac
 y policies.\nSpeaker: Roberto Weber
LAST-MODIFIED:20181008T083707Z
LOCATION:MPI\, Room: Ground Floor
SUMMARY:Revealed Privacy Preferences: Are Privacy Choices Rational? (with Y
 i-Shan Lee) 
URL;VALUE=URI:https://www.econ.mpg.de/events/15660/13681
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