Unité mixte de recherche 7235

A Franc Less for a Pound More: (Price) Discrimination and the Value of Privacy

Intervenant : Wanda Mimra (IESEG)

Price discrimination based on consumers’ personal data has become common practice in many markets. We analyze the willingness to share personal data when this data is used for pricing in subsequent markets. In a laboratory experiment, participants can sell a bundle of personal data. Participants are categorized based on the content of their personal data and receive category-dependent payoffs in a subsequent stage. The experimental variations change category-dependent the payoff structure. We find no effect of subsequent price discrimination on the general willingness to sell personal data. A significant change in the price of personal data is only observed under strong negative price discrimination. Furthermore, we find important gender differences in data selling price adjustments and the role of underlying privacy concerns.


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