Investigating the willingness to share data: I am not giving it to that purpose!

Abstract

The protection and value of consumer personal data has garnered significant attention from both legal scholars and economists. Personal data has become an increasingly critical asset for firms, contributing to their success. A key factor in data protection is the specific purpose for which the data is used, as legal frameworks often provide varying levels of protection depending on the intended use which may or may not coincide with data users’ preferences. At the same time, firms are increasingly pursuing multiple objectives, balancing traditional profit-driven goals with social ones. In collaboration with a Dutch start-up in the sports and healthcare sector, we conducted an online experiment to examine consumers' willingness to share personal data for different purposes. Participants were asked to share their data for either a commercial, a social purpose, or both. We, furthermore, elicited some of the motivations behind it. Our findings suggest that the purpose for which data is requested has a nuanced impact on consumers' willingness to share personal information. When consumers are not aware of another purpose, purpose has no effect on willingness to share, while if the other purpose is known, consumers are more readily willing to share their data for the social than the commercial purpose. Joint paper with Elbert Dijkgraaf, Emiel Maasland, Elric Tendron, and Franziska Weber.