Acquisti Privacy Behavioral Economics
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Transcript of Acquisti Privacy Behavioral Economics
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:TheParadoxo Control
&OtherStudiesAlessandro
Acquisti
HeinzCollege/CyLabCarnegieMellonUniversity
FridayOctober15,2010
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a are e ra eo sassoc a e w pro ec ngan s ar ng
personaldata?
Howrationallydowecalculate,andmakedecisionsabout,those
tradeoffs?
Whataretheconsequencesofthosedecisions?
anwe
(an
s ou
we)
assist
t ose
ecisions,
t roug
tec no ogy
orpolicydesign?
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n e ec ua cur os y
Policyintervention,Technologydesign
Managerial&Marketingimplications
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1. Fromtheeconomicsofprivacy2. tothebehavioraleconomicsofprivacy
3. Threestudies
Theinconsistencyofprivacyvaluations T epara oxo contro
Discountingpastinformation
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Protectionandrevelationofpersonaldataflowsinvolvetangibleand
intangible
trade
offs
for
the
datasubjectas
well
as
the
potentialdataholdery1
TheChicagoschoolapproach(Posner1978,Stigler1980,)
Mid1 0s
ITexplosion(Varian1996,Noam1996,Laudon 1996,)
After2000
Forma microeconomicmo e s Acquisti Varian2001,Tay or2001,Calzolari &Pavan 2001,Katz&Hermalin 2003,)
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Individualshavestablespreferencesoverprivacy
Basedonthosepreferences,theymentallytradeoffcostsand
benefitsofsharingandprotectingdata
Basedonthosetradeoffs,theydeciderationallywhatpersonal
informationtorevealandwhattoprotect
Therefore,noneedformarket(regulatory)intervention
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Lenar an Ru in2009:T ecompetitiveon inemar etstructure
suggeststhatfirmsdohaveincentivestosatisfytheircustomersprivacy
preferencesandthatconsumersbehaviorinthemarketreflectstheir
preferences.
Schmidt:Ifyouhavesomethingthatyoudon'twantanyonetoknow,
maybeyou
shouldn't
be
doing
it
in
the
first
place.
Zuckenberg:[The]socialnorm[aboutprivacy]isjustsomethingthat
hasevolvedovertime.
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Should I mentionmy sexual kinkson MySpace?
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...prospects? And what if my parents happen to log on...
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)1()1( itdiitdi
costsuqbenefitsup tt++
$s
WTA
WTP
Privacy
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(Framingissues)
(Conflictingneeds)
1. Incompleteinformation
2. oun e ra ona y
3. Cognitive/behavioralbiases
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v u y v
thetheoreticalbehavioroftherationaleconomicagent
Man ofthosedeviationshavea licationstothe rivac arena as
wellasinformationsecurity)
Applyingbehavioral,experimentaleconomicstothe
un erstan ingo privacy ecisionma ing e psus:
1. Understandhowpeoplemake(sometimesbiased)decisionsabout
their ersonalinformation
2. Informpolicyandtechnologydesign,toamelioratedecisionmaking
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Controlled,randomizedex eriments(inthelab,inthefield,
surveybased,nonsurveybased,)
v w u ,
otherwiselatentandthereforeunobservable)privacyconcerns Actualbehaviorvs.Surveyresponses(selfdisclosures)
Validationstudiesvs.Comparativestudies
Manyinfluences:BEandBDR,butalso:
Surveydesign(e.g.Schwarz1999);selfdisclosure(e.g.AltmanandTaylor
1973);privacyanddisclosure(e..g,Margulis2003);privacyconcerns(e.g.,
CulnanandArmstrong1999);
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Someresults 200 2010
Hyperbolicdiscountinginprivacyvaluations Overconfidence,optimismbiasinpersonaldisclosures
on en a yassurances n n orma on sc osure
Individualsmorelikelytodisclosesensitiveinformationto
unprofessionalsitesthanprofessionalsites
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.
Abouthowtheendowmenteffect affectspeopleswillingnesstopayfor
2. Theparadoxofcontrol
Aboutthepropensitytorevealpersonalinformation
3. Discountingpastinformation
Abouttheimpactonothersofonespersonalinformation
JointworkswithLauraBrandimarte,JoachimVosgerau,LeslieJohn,GeorgeLoewenstein
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1. e ncons stencyo pr vacyva uat ons WithLeslieJohnandGeorgeLoewenstein
2. Theparadoxofcontrol
. Discountin astinformation
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Canmereframingchangethevaluationofpersonaldata?
Consider:
Willingnesstoaccept(WTA)moneytogiveawayinformation
vs.
Willingnesstopay(WTP)moneytoprotectinformation
H othesis:
Peopleassigndifferentvaluestotheirpersonalinformationdepending
onwhetherthe arefocusin on rotectin it orrevealin it
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Aspaymentforparticipation,subjectswereofferedgiftcards Wemanipulatedtradeoffsbetweenprivacyprotectionandvalue
ofcards Subjectsendowedwitheither:
$10Anon mous iftcard.Yournamewillnotbelinkedtothetransactionscompletedwiththecard,anditsusagewillnotbetrackedbytheresearchers.
$12Trackable iftcard.Yournamewillbelinkedtothetransactionscompleted
with
the
card,
and
its
usage
will
be
tracked
by
the
researchers.
Subjectsaskedwhethertheydliketoswitchcards
From$12Trackable to$10Anonymous(WTP)
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52.1
50
60
10card
.
26.730
40
on
ymous
9.710
20
choosinga
0
Endowed $10 (n=71) Choice $10 vs. $12
(n=83)
Choice $12 vs. $10
(n=57)
Endowed $12 (n=62)
%
2(3) = 30.66, p < 0.0005
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, ,
primingandframing
Thisdoesnotnecessarilymeanthatpeopledontcareforprivacy,orareirrational
at er, t mp est atre anceon revea e pre erences
argumentforprivacymayleadtosuboptimaloutcomesifprivacy
valuationsareinconsistent
Peoplemaymakedisclosuredecisionsthattheystandtolaterregret
Viciouscircle:ifyouhavelessprivacy,youvalueprivacy less
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1. e ncons stencyo pr vacyva uat ons
2. Theparadoxofcontrol WithLauraBrandimarteandGeorgeLoewenstein
.
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Privac
and(the
aradox
of)
control
Contro ::Privacy
+
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Privac
and(the
aradox
of)
control
Contro ::Privacy
=
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Privac
and(the
aradox
of)
control
Contro ::Privacy
-
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The
aradoxof
control
h othesis
Con ecture: When decidin what to reveal about ourselves we
confound control over publication of private information withcontrol over access/use of that information by others
information by others, not merely its publication
personal information will disclose more [less] sensitive information even though they may have less [more] control over access and
use o t at in ormation
Wh ?
Saliency of act of publishing, Overconfidence
See Henslin 1967, Langer 1975
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personalinformation Mediatedvs.unmediatedpublication
Experiment2:Reducing perceivedcontroloverpublicationof
personalinformation Certaintyvs.probabilityofpublication
Ex eriment :Increasin erceivedcontrolover ublicationof
personalinformation Explicitvs.implicitcontrol
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personalinformation Mediatedvs.unmediatedpublication
Experiment2:Reducingperceivedcontroloverpublicationofpersonalinformation Certaintyvs.probabilityofpublication
Ex eriment :Increasin erceivedcontrolover ublicationofpersonalinformation Explicitvs.implicitcontrol
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Subjects:100+CMUstudentsrecruitedoncampus
As e tocomp eteon inesurvey
Justificationforthesurvey:creationofCMUnetworkingwebsite
Questionsfocusedonstudentslifeonandoffcampus
Multiplechoice,Yes/No,Ratingandopenendquestions
Asratedby31subjectsindependentlyinaprestudy
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epen en var a es
Responserate:whethersubjectansweredornot(White2004)
Recall:Validationstudiesvs.Comparisonstudies
Explanatoryvariables Experimentaltreatment
Intrusivenessofquestions
Demographics
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Manipulation:Profileautomaticallypublishedvs.profilepublishedwith50%probability(lesscontrol)
Condition1
Theinformationyouprovidewillappearonaprofilethatwillbeautomaticallycreated
foryou.TheprofilewillbepublishedonanewCMUnetworkingwebsite,whichwillonly
be
accessible
by
members
of
the
CMU
community,
starting
at
the
end
of
this
semes er. e a aw no euse nanyo erway.ANANSWER.
Theinformationyouprovidewillappearonaprofilethatwillbeautomaticallycreated
foryou.Halfoftheprofilescreatedfortheparticipantswillberandomlypickedtobe,
oftheCMUcommunity,startingattheendofthissemester.Thedatawillnotbeusedinanyotherway.NOQUESTION/FIELDREQUIRESANANSWER.
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answersensitivequestionsinCondition1thaninCondition2,
u nomore e y oanswernonsens veques ons
Alternativeresultsthatwouldnotsupportthecontrol
paradoxhypothesis:
Subjectsmorelikelytoanswersensitiveandnonsensitivequestionsin
Condition1than
in
Condition
2
Subjectsnomorelikelytoanswersensitiveandnonsensitivequestions
inCondition1thaninCondition2
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Desi n
Subjects:100+CMUstudentsrecruitedoncampus,March2010 Completedonlinesurvey
ust cat on ort esurvey:stu yonet ca e av ors
TenYes/Noquestionsthatfocusedonsensitivebehaviors(e.g.drug
use,stealing) Included demographics +privacyintrusiveandnonintrusive questions
Asrated by 49subjects independently inaprestudy
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Conditions(reduced)
Implicitcontrol
condition
Allanswersarevoluntary.Byansweringaquestion,youagreetogivetheresearcherspermissiontopublishyouranswer.
ExplicitcontrolconditionAllanswersarevoluntary.Inordertogivetheresearcherspermissiontopublishyouranswertoa
question,
you
will
be
asked
to
check
the
corresponding
box
in
the
following
page.
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answerANDtoallowpublicationofsensitivequestionsinthe
exp c con ro con on an n e mp c con ro con on
Alternativeresultsthatwouldnotsupportthecontrol
paradoxhypothesis:
Subjectsmorelikelytoanswersensitiveintheexplicitcontrolcondition,
butnot
more
likely
to
allow
their
publication
Subjectsnomorelikelytoanswersensitiveintheexplicitcontrol
condition,nortoallowtheirpublication
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Coefficients
andpvalues
Treatment 1.92**(.000)
**Intrusive .
(.000)
Treat_Int 1.21**
(.002)
Age .03
(.521)
Male .11
(.593)
N
Prob>265
.000
w u yformostintrusivequestions,interactionanddemographics
*indicatessignificanceat10%level;**indicatessignificanceat5%level
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publication,orwhenthepublicationitselfbecomesuncertain
whichreducestheprobabilityofaccess/usebyothers
peoplerefrainfromdisclosing
Perceivedless[more]controloverpublicationreduces
[increases]revelationofprivateinformation
Eventhoughobjectiverisksofrevelationdecrease[increase]
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Itisnotthepublicationofprivateinformationperse thatdisturbspeople,
u e ac a someonee sew pu s or em
ResultscallintoquestionsOSNsargumentsofprotecting
privacybyprovidingmorecontroltomembers
Givingmorecontroltousersoverinformationpublicationseemsto
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1. e ncons stencyo pr vacyva uat ons
2. Theparadoxofcontrol
3. Discountingpastinformation
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e researc ques on
Howdoesinformationaboutapersonorcompanyspast,
retrievedtoday,getdiscounted?
Specifically:doesinformationaboutapersonspastwithnegativevalencereceivemoreweightinimpressionformationthaninformationwithpositivevalence?
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ypo es s o eren a scoun ng
mpac o n orma onw nega veva ence as s onger an
impactofinfowithpositivevalence,notonlybecauseofasymmetriceffectsofvalence,butalsobecauseofdifferentweights ordiscountrates appliedtothetwotypesofinfo
Mobilizationeffects(Taylor1991)andevolutionarytheory
(Baumeister etal.2001)
egat v ty as e gman a er19 7
Negativeinfoismoreattentiongrabbing(Pratto &John1991)
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es ng our ypo es s: ree exper men s
Weranthreesurveybasedrandomizedexperiments,manipulating
valence ofinformationaboutthirdpartiesprovidedtosubjectsand
thetime towhichthatinformationreferred
Subjectswereaskedtoexpressajudgmentonthepersonor
companytheyjustreadabout
Threeex eriments:
Thedictatorgame
The wallet experiment
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xper men : e a e ory
Hypotheticalscenario:subjectsarepresentedbackgroundinformationaboutanotherperson,andaskedtoexpressa
judgmentabouther
Baselinecondition:onl baselineinformationis rovided Treatmentconditions:manipulationofvalenceandtime:
1. ea o e ase ne n oone e a w e erpos veor
negativevalence
2. n ,wevary e me ow c a e a re ers
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. . , answerthequestionsbelowand inthenextpage.
Mr.AwasborninSanDiego,California,whereheattendedelementaryandmiddleschool.Asachild,.
Whenhewas16yearsold,hemovedtoSacramento,California,withhisfamily.Heattendedhighschoolthereandgothisdrivinglicense.
Aftergraduationhe movedtoHouston,Texas.
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. . , answerthequestionsbelowand inthenextpage.
Mr.AwasborninSanDiego,California,whereheattendedelementaryandmiddleschool.Asachild,.
Whenhewas16yearsold,hemovedtoSacramento,California,withhisfamily.Heattendedhighschoolthereandgothisdrivinglicense.
Justaboutgraduation,hefoundalostwoman'spursecontaining$10,000incash.Hereportedthediscoverytothepolice,andtherightfulownerretrievedhermoney.
,
months.
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. . , answerthequestionsbelowand inthenextpage.
Mr.AwasborninSanDiego,California,whereheattendedelementaryandmiddleschool.Asachild,.
Whenhewas16yearsold,hemovedtoSacramento,California,withhisfamily.Heattendedhighschoolthereandgothisdrivinglicense.
Justaboutgraduation,hefoundalostwoman'spursecontaining$10,000incash.Hedidnotreportthediscoverytothepolice,andtherightfulownerdidnotretrievehermoney.
,
months.
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. . , answerthequestionsbelowand inthenextpage.
Mr.AwasborninSanDiego,California,whereheattendedelementaryandmiddleschool.Asachild,.
Whenhewas16yearsold,hemovedtoSacramento,California,withhisfamily.Heattendedhighschoolthereandgothisdrivinglicense.
Justaboutgraduation,hefoundalostwoman'spursecontaining$10,000incash.Hereportedthediscoverytothepolice,andtherightfulownerretrievedhermoney.
,
years.
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. . , answerthequestionsbelowand inthenextpage.
Mr.AwasborninSanDiego,California,whereheattendedelementaryandmiddleschool.Asachild,.
Whenhewas16yearsold,hemovedtoSacramento,California,withhisfamily.Heattendedhighschoolthereandgothisdrivinglicense.
Justaboutgraduation,hefoundalostwoman'spursecontaining$10,000incash.Hedidnotreportthediscoverytothepolice,andtherightfulownerdidnotretrievehermoney.
,
years .
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Onebaselinecondition
2x2treatmentconditions:
Reportedwallet, 5yearsago Reportedwallet, 12months ago
Didnot reportwallet, 5yearsago Didnotreportwallet, 12months ago
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Dependentvariables:
Howmuchsubjectslikedthepersondescribed
Howmuchsubjectswouldhavelikedtoworkwithher(Interpersonal
JudgmentScale,Byrne1961)
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xper men : e a e ory - esu s
.
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Badisnotjuststrongerthangood...
.Itisalsodiscounteddifferentlythangood
Implications:futureimpactofinformationrevealedtoday
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, ,
primingandframing
Thisdoesnotnecessarilymeanthatpeopledontcareforprivacy,orareirrational,ormakewrongdecisionsaboutprivacy
at er, t mp est atre anceon revea e pre erences
argumentforprivacymayleadtosuboptimaloutcomesifprivacy
valuationsareinconsistent Peoplemaymakedisclosuredecisionsthattheystandtolaterregret
Risksgreatlymagnifiedinonlineinformationrevelation
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Choice¬ificationprivacymodelmaybeoutdated
Implicationsforpolicymaking&thedebateonprivacy
regulation
Consider:Chica oSchoola roachvs. rivac advocates
Nudgingprivacy?
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Google:economicsprivacy
Visit:http://www.heinz.cmu.edu/~acquisti/economics
privacy.htm
. .