The Economic Perspective of Privacy - Examination of Different Methods for Monetary Quantification

Abstract

Privacy is increasingly regarded as a commodity in the digital economy. The economic aspect of privacy involves trade-offs between personal and public interests. Businesses collect vast amounts of personal data, while individuals are both consumers and data suppliers. Research attempts to measure data's monetary value through Willingness-To-Pay (WTP) and Willingness-To-Accept (WTA), revealing the "Privacy Paradox." Recent methods like Contingent Valuation (CV) and Discrete Choice Experiment (DCE) offer insights into data sensitivity. Given the unresolved debate surrounding the measurement of privacy's monetary value, this thesis aims to compare the two stated approaches used in two experiments. Through comprehensive evaluation, this thesis seeks to determine the reliability of CV and DCE methodologies and validate the economic perspective as a viable approach to understanding privacy.