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The Empirical Implications of Privacy-Aware Choice

Cummings, Rachel and Echenique, Federico and Wierman, Adam (2016) The Empirical Implications of Privacy-Aware Choice. Operations Research, 64 (1). pp. 67-78. ISSN 0030-364X. doi:10.1287/opre.2015.1458.

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This paper initiates the study of the testable implications of choice data in settings where agents have privacy preferences. We adapt the standard conceptualization of consumer choice theory to a situation where the consumer is aware of, and has preferences over, the information revealed by her choices. The main message of the paper is that little can be inferred about consumers’ preferences once we introduce the possibility that the consumer has concerns about privacy. This holds even when consumers’ privacy preferences are assumed to be monotonic and separable. This motivates the consideration of stronger assumptions and, to that end, we introduce an additive model for privacy preferences that has testable implications.

Item Type:Article
Related URLs:
URLURL TypeDescription Paper ItemConference Paper
Echenique, Federico0000-0002-1567-6770
Additional Information:© 2015 INFORMS. Received: January 2014; Accepted: September 2015; Published Online: January 12, 2016.
Subject Keywords:privacy; revealed preference
Issue or Number:1
Record Number:CaltechAUTHORS:20160602-090011567
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:67570
Deposited By: Tony Diaz
Deposited On:02 Jun 2016 19:28
Last Modified:11 Nov 2021 03:50

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