The Value of Online Information Privacy: An Empirical Investigation

Abstract

Concern over online information privacy is widespread and rising. However, prior research is silent about the value of information privacy in the presence of potential benefits from sharing personally identifiable information. Analyzing individuals' trade-offs between the benefits and costs of providing personal information to websites revealed that benefits, monetary reward and future convenience, significantly affect individuals' preferences over websites with differing privacy policies. Quantifying the value of website privacy protection revealed that among U.S. subjects, protection against errors, improper access, and secondary use of personal information is worth US $30.49 - 44.62. Finally, three distinct segments of Internet consumers were determined: privacy guardians, information sellers and convenience seekers.