In the context of a myriad of mobile apps which collect personally identifiable information (PII) and a prospective market place of personal data, we investigate a user-centric monetary valuation of mobile PII. During a 6-week long user study in a living lab deployment with 60 participants, we collected their daily valuations of 4 categories of mobile PII (communication, e.g. phonecalls made received, applications, e.g. time spent on different apps, location and media, e.g. photos taken) at three levels of complexity (individual data points, aggregated statistics and processed, i.e. meaningful interpretations of the data). In order to obtain honest valuations, we employ a reverse second price auction mechanism. Our findings show that the most sensitive and valued category of personal information is location. We report statistically significant associations between actual mobile usage, personal dispositions, and bidding behavior. Finally, we outline key implications for the design of mobile services and future markets of personal data.
Previous research has shown that disclosure @cite_44 and valuation @cite_45 @cite_29 depend on the kind of information to be released. Huberman @cite_29 reported that the valuation of some types of personal information, such as the subject's weight and the subject's age depends on the desirability of these types of information in a social context. Some empirical studies have attempted to quantify subjective privacy valuations of personal information in different contexts, such as personal information revealed online @cite_58 , access to location data @cite_9 , or removal from marketers' call lists @cite_30 . These studies can be classified into two groups. The first and larger group includes studies that explicitly or implicitly measure the amount of money or benefit that a person considers to be enough to share her his personal data, namely their (WTA) giving away his her own data (see for example @cite_9 @cite_11 ). The second and smaller group includes studies about tangible prices or intangible costs consumers are (WTP) to protect their privacy (see for example, @cite_46 @cite_13 ). In our paper, we do not deal with WTA vs WTP, but we focus on WTA for PII captured by mobile phones (communications, apps and media usage, locations).
@cite_30 @cite_9 @cite_29 @cite_44 @cite_45 @cite_46 @cite_58 @cite_13 @cite_11
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In the context of a myriad of mobile apps which collect personally identifiable information (PII) and a prospective market place of personal data, we investigate a user-centric monetary valuation of mobile PII. During a 6-week long user study in a living lab deployment with 60 participants, we collected their daily valuations of 4 categories of mobile PII (communication, e.g. phonecalls made received, applications, e.g. time spent on different apps, location and media, e.g. photos taken) at three levels of complexity (individual data points, aggregated statistics and processed, i.e. meaningful interpretations of the data). In order to obtain honest valuations, we employ a reverse second price auction mechanism. Our findings show that the most sensitive and valued category of personal information is location. We report statistically significant associations between actual mobile usage, personal dispositions, and bidding behavior. Finally, we outline key implications for the design of mobile services and future markets of personal data. AbstractUnderstanding the value that individuals assign to the protection of their personal data is of great importance for business, law, and public policy. We use a field experiment informed by behavioral economics and decision research to investigate individual privacy valuations and find evidence of endowment and order effects. Individuals assigned markedly different values to the privacy of their data depending on (1) whether they were asked to consider how much money they would accept to disclose otherwise private information or how much they would pay to protect otherwise public information and (2) the order in which they considered different offers for their data. The gap between such values is large compared with that observed in comparable studies of consumer goods. The results highlight the sensitivity of privacy valuations to contextual, nonnormative factors. The advent of the Internet has made the transmission of personally identifiable information more common and often unintended by the user. As personal information becomes more accessible, individuals worry that businesses misuse the information that is collected while they are online. Organizations have tried to mitigate this concern in two ways: (1) by offering privacy policies regarding the handling and use of personal information and (2) by offering benefits such as financial gains or convenience. In this paper, we interpret these actions in the context of the information-processing theory of motivation. Information-processing theories, also known as expectancy theories in the context of motivated behavior, are built on the premise that people process information about behavior-outcome relationships. By doing so, they are forming expectations and making decisions about what behavior to choose. Using an experimental setting, we empirically validate predictions that the means to mitigate privacy concerns are associated with positive valences resulting in an increase in motivational score. In a conjoint analysis exercise, 268 participants from the United States and Singapore face trade-off situations, where an organization may only offer incomplete privacy protection or some benefits. While privacy protections (against secondary use, improper access, and error) are associated with positive valences, we also find that financial gains and convenience can significantly increase individuals' motivational score of registering with a Web site. We find that benefits-monetary reward and future convenience-significantly affect individuals' preferences over Web sites with differing privacy policies. We also quantify the value of Web site privacy protection. Among U.S. subjects, protection against errors, improper access, and secondary use of personal information is worth @math 44.62. Finally, our approach also allows us to identify three distinct segments of Internet users-privacy guardians, information sellers, and convenience seekers. Most online service providers offer free services to users and in part, these services collect and monetize personally identifiable information (PII), primarily via targeted advertisements. Against this backdrop of economic exploitation of PII, it is vital to understand the value that users put to their own PII. Although studies have tried to discover how users value their privacy, little is known about how users value their PII while browsing, or the exploitation of their PII. Extracting valuations of PII from users is non-trivial - surveys cannot be relied on as they do not gather information of the context where PII is being released, thus reducing validity of answers. In this work, we rely on refined Experience Sampling - a data collection method that probes users to valuate their PII at the time and place where it was generated in order to minimize retrospective recall and hence increase measurement validity. For obtaining an honest valuation of PII, we use a reverse second price auction. We developed a web browser plugin and had 168 users - living in Spain - install and use this plugin for 2 weeks in order to extract valuations of PII in different contexts. We found that users value items of their online browsing history for about ∈7 ( 10USD), and they give higher valuations to their offline PII, such as age and address (about 25∈ or 36USD). When it comes to PII shared in specific online services, users value information pertaining to financial transactions and social network interactions more than activities like search and shopping. No significant distinction was found between valuations of different quantities of PII (e.g. one vs. 10 search keywords), but deviation was found between types of PII (e.g. photos vs. keywords). Finally, the users' preferred goods for exchanging their PII included money and improvements in service, followed by getting more free services and targeted advertisements.