Provided by: The Pennsylvania State University
Date Added: Jun 2012
Under certain circumstances, consumers are willing to pay a premium for privacy. The authors explore how choice architecture affects smartphone users' stated willingness to install applications that request varying permissions. They performed two experiments to gauge Smartphone users' stated willingness to pay premiums to limit their personal information exposure when installing new applications. They found that when participants were comparison shopping between multiple applications that performed similar functionality, a quarter of their sample responded that they were willing to pay a $1.50 premium for the application that requested the fewest permissions - though only when viewing the requested permissions of each application side-by-side.