Privacy and Behavioral Economics

What is it about?

There are diverse streams of empirical research attempting to study complex privacy behaviors in different scenarios. In this chapter, we connect those streams and present them under three themes: (1) individuals’ uncertainty about their own preferences as well as their uncertainty about the consequences of information disclosure; (2) the context-dependence of individuals’ concern, or lack thereof, about privacy; (3) the degree to which privacy concerns are malleable and prone to manipulations by commercial and government entities. Building on these themes, we discuss the role of public policy in the protection of privacy in the information age.

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