Inbal Dekel
Rachel Cummings
ABSTRACT
We propose and initiate the study of privacy elasticity---the responsiveness of economic variables to small changes in the level of privacy given to participants in an economic system. Individuals rarely experience either full privacy or a complete lack of privacy; we propose to use differential privacy---a computer-science theory increasingly adopted by industry and government---as a standardized means of quantifying continuous privacy changes. The resulting privacy measure implies a privacy-elasticity notion that is portable and comparable across contexts. We demonstrate the feasibility of this approach by estimating the privacy elasticity of public-good contributions in a lab experiment.
Index Terms
- The Privacy Elasticity of Behavior: Conceptualization and Application
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