An experimental analysis of bounded rationality: Applying insights from behavioral economics to information systems

The paradigm of bounded rationality considers the limited ability of individuals to make consistent and rational choices. Due to the scarcity of research on this phenomenon in information systems, we conducted an experimental study investigating decision-making regarding risk preferences and social preferences. Moreover, we explored the stability of these preferences under different conditions and uncovered the role of information retrieval in individual decision-making. We find that although individuals are generally risk-averse and egoistic, none of these preferences is stable under the conditions tested which provides indices of boundedly rational decision-making. Although the information retrieved by participants generally allows to infer their preferences, the increasing amount and complexity of this information again often results in boundedly rational behavior.bounded rationality, experimental design, information retrieval, stability of attitudes and behavior, cognitive tracing, behavioral economics, behavioral information systems

On-line privacy behavior: using user interfaces for salient factors

The problem of privacy in social networks is well documented within literature; users have privacy concerns however, they consistently disclose their sensitive information and leave it open to unintended third parties. While numerous causes of poor behaviour have been suggested by research the role of the User Interface (UI) and the system itself is underexplored. The field of Persuasive Technology would suggest that Social Network Systems persuade users to deviate from their normal or habitual behaviour. This paper makes the case that the UI can be used as the basis for user empowerment by informing them of their privacy at the point of interaction and reminding them of their privacy needs. The Theory of Planned Behaviour is introduced as a potential theoretical foundation for exploring the psychology behind privacy behaviour as it describes the salient factors that influence intention and action. Based on these factors of personal attitude, subjective norms and perceived control, a series of UIs are presented and implemented in controlled experiments examining their effect on personal information disclosure. This is combined with observations and interviews with the participants. Results from this initial, pilot experiment suggest groups with privacy salient information embedded exhibit less disclosure than the control group. This work reviews this approach as a method for exploring privacy behaviour and proposes further work required

Exploring online users´ attitudes and behaviors: the privacy paradox and its current motivations

Individuals' privacy has become an essential theme to be addressed in today's growing digital world" Privacy Paradox" is the discrepancy between privacy concerns and actual behaviors This research aims to explore whether:- Users are still concerned about their online privacy- The elements of Privacy Cynicism has an impact on users' online behavio

Is the Privacy Paradox a Matter of Psychological Distance? An Exploratory Study of the Privacy Paradox from a Construal Level Theory Perspective

Institutional operators in the digital marketplace have delighted consumers with precise, highly personalized and customized products and services through the collection and mining of customers’ personally identifiable data. However, the ethical conduct of online businesses continues to be a debatable issue, due to the increasing concerns over information privacy. Despite such controversies, scrutiny of consumer behavior has shown that consumers’ concerns for privacy do not transfer into protective behaviors or abstinence during online activity. The aim of this study is to illuminate the disparity known as the -˜privacy paradox’ through the directions of the construal level theory. Based on semi-structured interviews with 21 online shopping consumers, we explain that, due to spatial, temporal, social, and hypothetical distance of privacy values, privacy is construed as an abstract phenomenon influencing the formation of distant-future attitudes and intentions rather than actual behavior

A Behavioural Analysis of Online Privacy and Security

Psychological and sociological factors constrain economic decision-making in many contexts including the online world. Behavioural economics and economic psychology emphasise that people will make mistakes in processing information and in planning for the future; these mistakes will also distort learning processes. Emotions and visceral factors will play a key role - not only a ecting people's actions but also distorting the interactions between information, learning and choices. This will have wide-ranging implications for online behavior and information security management, making people more vulnerable to security/privacy abuses including hacking, spam attacks, phishing, identity theft and online financial exploitation. These vulnerabilities raise crucial policy questions - recently made more pressing in the light of recent phone-hacking scandals in the UK. This paper outlines some of the behavioural factors affecting people's online behaviour and analyses real-world reactions to online fraud using evidence from the British Crime Survey 2009-10