Do some individuals value their privacy enough to pay a mark-up to an
online service provider who protects their information better? How is
this related to personalisation of services?
This study analyses the monetisation of privacy. ‘Monetizing privacy’
refers to a consumer’s decision of disclosure or non-disclosure of
personal data in relation to a purchase transaction. The main goal of
this report is to enable a better understanding of the interaction of
personalisation, privacy concerns and competition between online service
providers. Consumers benefit from personalisation of products on the
one hand, but might be locked in to services on the other. Moreover,
personalisation also bears a privacy risk, i.e. that data may be
compromised once disclosed to a service provider.
Privacy is a human right; thinking about the economics of privacy does
not change this basic fact.
The authors of this report consider an
economic analysis of privacy as complementary to the legal analysis as
it improves our understanding of human decision-making with respect to
personal data.
see the full report at Enisa
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