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An Experimental Infrastructure to Investigate the Impact of Online Tracking, Targeting, and Advertising on Consumer Behavior and Consumer Welfare

Author

Listed:
  • Cristobal Cheyre

    (Cornell University)

  • Li Jiang

    (George Washington University)

  • Florian Schaub

    (University of Michigan)

  • Zijun Ding

    (Carnegie Mellon University)

  • Cristiana Firullo

    (Cornell University)

  • Yucheng Li

    (Carnegie Mellon University)

  • Alessandro Acquisti

    (Carnegie Mellon University)

Abstract
We present the design of a field experiment on the impact of tracking, targeting, ad-blocking, and anti-tracking technologies on consumers’ behavior and economic outcomes. The online data industry has often heralded the benefits of online tracking and targeting, particularly in the context of online advertising. Its claims are juxtaposed by the privacy concerns associated with the vast number of ad-tech companies tracking and analyzing consumers’ online behavior – often without consumers’ awareness. We use a field experiment to analyze the impact of online tracking and targeting as well as ad-blocking and anti-tracking technologies, focusing on consumers’ online behaviors (such as browsing and shopping), and their ultimate purchasing outcomes (as measured by amounts of money spent online, product prices paid, time spent on product searching, and purchase satisfaction). In this draft, we describe the rationale and motivations behind the study; the experimental design and the instrumentation infrastructure developed for the experiments; and the plans for data collection.

Suggested Citation

  • Cristobal Cheyre & Li Jiang & Florian Schaub & Zijun Ding & Cristiana Firullo & Yucheng Li & Alessandro Acquisti, 2024. "An Experimental Infrastructure to Investigate the Impact of Online Tracking, Targeting, and Advertising on Consumer Behavior and Consumer Welfare," Working Papers 24-10, NET Institute.
    • Handle: RePEc:net:wpaper:2410
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    File URL: http://www.netinst.org/Acquisti_24-10.pdf
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    More about this item

    Keywords

    economics of digitization; economics of privacy; online experiments; online advertising; behavioral advertising;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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