From the economics to the behavioral economics of privacy: A Note

Abstract

In this brief note, I summarize previous work and offer an overview of two related fields of research: the economics and the behavioral economics of privacy. The economics of privacy studies the trade-offs associated with the protection or revelation of personal information. However, theoretical models in this area sometimes make overly restrictive assumptions about individuals' decision making. The behavioral economics of privacy attempts to address such shortcomings. In doing so, it can help us gain a better understanding of how we value, and make (sometimes biased) decisions about, our personal data. © Springer-Verlag Berlin Heidelberg 2010.