Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/159714 
Year of Publication: 
2013
Series/Report no.: 
Quaderni - Working Paper DSE No. 875
Publisher: 
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
Abstract: 
Companies are under an increasing pressure by policy makers to publicize data breaches. Such notification obligations require announcing the loss of personal data collected from customers, because of hacker attacks or other incidents. While notification is likely to impact on firms' reputation, we know little about the impact such notifications have on consumers with respect to disclosure of their personal data. We present the problem as a dynamic lottery with personal data under the risk of privacy shocks and experimentally study how the privacy breach notification changes an individual's behavior regarding data disclosure. Our results suggest that the notification induces individuals – disregarding the sensitivity of their data – to disclose more.
JEL: 
D43
L14
O30
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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