[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v26y2015i4p639-655.html
   My bibliography  Save this article

Research Commentary—Informing Privacy Research Through Information Systems, Psychology, and Behavioral Economics: Thinking Outside the “APCO” Box

Author

Listed:
  • Tamara Dinev

    (Department of Information Technology and Operations Management, College of Business, Florida Atlantic University, Boca Raton, Florida 33431)

  • Allen R. McConnell

    (Department of Psychology, Miami University, Oxford, Ohio 45056)

  • H. Jeff Smith

    (Department of Information Systems and Analytics, Farmer School of Business, Miami University, Oxford, Ohio 45056)

Abstract
Recently, several researchers provided overarching macromodels to explain individuals’ privacy-related decision making. These macromodels—and almost all of the published privacy-related information systems (IS) studies to date—rely on a covert assumption: responses to external stimuli result in deliberate analyses, which lead to fully informed privacy-related attitudes and behaviors. The most expansive of these macromodels, labeled “Antecedents–Privacy Concerns–Outcomes” (APCO), reflects this assumption. However, an emerging stream of IS research demonstrates the importance of considering principles from behavioral economics (such as biases and bounded rationality) and psychology (such as the elaboration likelihood model) that also affect privacy decisions. We propose an enhanced APCO model and a set of related propositions that consider both deliberative (high-effort) cognitive responses (the only responses considered in the original APCO model) and low-effort cognitive responses inspired by frameworks and theories in behavioral economics and psychology. These propositions offer explanations of many behaviors that complement those offered by extant IS privacy macromodels and the information privacy literature stream. We discuss the implications for research that follow from this expansion of the existing macromodels.

Suggested Citation

  • Tamara Dinev & Allen R. McConnell & H. Jeff Smith, 2015. "Research Commentary—Informing Privacy Research Through Information Systems, Psychology, and Behavioral Economics: Thinking Outside the “APCO” Box," Information Systems Research, INFORMS, vol. 26(4), pages 639-655, December.
  • Handle: RePEc:inm:orisre:v:26:y:2015:i:4:p:639-655
    DOI: 10.1287/isre.2015.0600
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.2015.0600
    Download Restriction: no

    File URL: https://libkey.io/10.1287/isre.2015.0600?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sandeep Rustagi & William R. King & Laurie J. Kirsch, 2008. "Predictors of Formal Control Usage in IT Outsourcing Partnerships," Information Systems Research, INFORMS, vol. 19(2), pages 126-143, June.
    2. Han Li & Rathindra Sarathy & Jie Zhang, 2008. "The Role of Emotions in Shaping Consumers’ Privacy Beliefs about Unfamiliar Online Vendors," Journal of Information Privacy and Security, Taylor & Francis Journals, vol. 4(3), pages 36-62, July.
    3. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    4. Ben Q. Liu & Dale L. Goodhue, 2012. "Two Worlds of Trust for Potential E-Commerce Users: Humans as Cognitive Misers," Information Systems Research, INFORMS, vol. 23(4), pages 1246-1262, December.
    5. Uri Gneezy & Alex Imas & Kristóf Madarász, 2012. "Conscience Accounting: Emotional Dynamics and Social Behavior," STICERD - Theoretical Economics Paper Series 563, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    6. Kristina Shampanier & Nina Mazar & Dan Ariely, 2007. "Zero as a Special Price: The True Value of Free Products," Marketing Science, INFORMS, vol. 26(6), pages 742-757, 11-12.
    7. Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 73-106.
    8. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    9. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    10. Shiv, Baba & Fedorikhin, Alexander, 1999. "Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(3), pages 278-292, December.
    11. Leonard Lee & On Amir & Dan Ariely, 2009. "In Search of Homo Economicus: Cognitive Noise and the Role of Emotion in Preference Consistency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(2), pages 173-187.
    12. Sirkka L. Jarvenpaa & Thomas R. Shaw & D. Sandy Staples, 2004. "Toward Contextualized Theories of Trust: The Role of Trust in Global Virtual Teams," Information Systems Research, INFORMS, vol. 15(3), pages 250-267, September.
    13. Sarah C. Rice, 2012. "Reputation and Uncertainty in Online Markets: An Experimental Study," Information Systems Research, INFORMS, vol. 23(2), pages 436-452, June.
    14. Ariely, Dan & Loewenstein, George & Prelec, Drazen, 2006. "Tom Sawyer and the construction of value," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 1-10, May.
    15. Leslie K. John & Alessandro Acquisti & George Loewenstein, 2011. "Strangers on a Plane: Context-Dependent Willingness to Divulge Sensitive Information," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(5), pages 858-873.
    16. Sirkka L. Jarvenpaa & Ann Majchrzak, 2010. "Research Commentary ---Vigilant Interaction in Knowledge Collaboration: Challenges of Online User Participation Under Ambivalence," Information Systems Research, INFORMS, vol. 21(4), pages 773-784, December.
    17. Levin, Irwin P. & Schneider, Sandra L. & Gaeth, Gary J., 1998. "All Frames Are Not Created Equal: A Typology and Critical Analysis of Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 149-188, November.
    18. Eric T. K. Lim & Chee-Wee Tan & Dianne Cyr & Shan L. Pan & Bo Xiao, 2012. "Advancing Public Trust Relationships in Electronic Government: The Singapore E-Filing Journey," Information Systems Research, INFORMS, vol. 23(4), pages 1110-1130, December.
    19. Paul Benjamin Lowry & Greg Moody & Anthony Vance & Matthew Jensen & Jeff Jenkins & Taylor Wells, 2012. "Using an elaboration likelihood approach to better understand the persuasiveness of website privacy assurance cues for online consumers," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 63(4), pages 755-776, April.
    20. Loewenstein, George, 1996. "Out of Control: Visceral Influences on Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 272-292, March.
    21. Paul Benjamin Lowry & Greg Moody & Anthony Vance & Matthew Jensen & Jeff Jenkins & Taylor Wells, 2012. "Using an elaboration likelihood approach to better understand the persuasiveness of website privacy assurance cues for online consumers," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 63(4), pages 755-776, April.
    22. Uri Gneezy & Alex Imas & Kristóf Madarász, 2014. "Conscience Accounting: Emotion Dynamics and Social Behavior," Management Science, INFORMS, vol. 60(11), pages 2645-2658, November.
    23. David Gefen & Paul A. Pavlou, 2012. "The Boundaries of Trust and Risk: The Quadratic Moderating Role of Institutional Structures," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 940-959, September.
    24. Eastlick, Mary Ann & Lotz, Sherry L. & Warrington, Patricia, 2006. "Understanding online B-to-C relationships: An integrated model of privacy concerns, trust, and commitment," Journal of Business Research, Elsevier, vol. 59(8), pages 877-886, August.
    25. Andreas I. Nicolaou & D. Harrison McKnight, 2006. "Perceived Information Quality in Data Exchanges: Effects on Risk, Trust, and Intention to Use," Information Systems Research, INFORMS, vol. 17(4), pages 332-351, December.
    26. Koray Özpolat & Guodong (Gordon) Gao & Wolfgang Jank & Siva Viswanathan, 2013. "Research Note ---The Value of Third-Party Assurance Seals in Online Retailing: An Empirical Investigation," Information Systems Research, INFORMS, vol. 24(4), pages 1100-1111, December.
    27. Tamara Dinev & Paul Hart, 2006. "An Extended Privacy Calculus Model for E-Commerce Transactions," Information Systems Research, INFORMS, vol. 17(1), pages 61-80, March.
    28. Deborah Compeau & Barbara Marcolin & Helen Kelley & Chris Higgins, 2012. "Research Commentary ---Generalizability of Information Systems Research Using Student Subjects---A Reflection on Our Practices and Recommendations for Future Research," Information Systems Research, INFORMS, vol. 23(4), pages 1093-1109, December.
    29. Alan R. Dennis & Lionel P. Robert & Aaron M. Curtis & Stacy T. Kowalczyk & Bryan K. Hasty, 2012. "Research Note ---Trust Is in the Eye of the Beholder: A Vignette Study of Postevent Behavioral Controls' Effects on Individual Trust in Virtual Teams," Information Systems Research, INFORMS, vol. 23(2), pages 546-558, June.
    30. Janice Y. Tsai & Serge Egelman & Lorrie Cranor & Alessandro Acquisti, 2011. "The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study," Information Systems Research, INFORMS, vol. 22(2), pages 254-268, June.
    31. Gediminas Adomavicius & Jesse C. Bockstedt & Shawn P. Curley & Jingjing Zhang, 2013. "Do Recommender Systems Manipulate Consumer Preferences? A Study of Anchoring Effects," Information Systems Research, INFORMS, vol. 24(4), pages 956-975, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Idris Adjerid & Sonam Samat & Alessandro Acquisti, 2016. "A Query-Theory Perspective of Privacy Decision Making," The Journal of Legal Studies, University of Chicago Press, vol. 45(S2), pages 97-121.
    2. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    3. Alisa Frik & Luigi Mittone, 2016. "Factors Influencing the Perceived Websites' Privacy Trustworthiness and Users' Purchase Intentions," CEEL Working Papers 1609, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    4. Mark J Hurlstone & Stephan Lewandowsky & Ben R Newell & Brittany Sewell, 2014. "The Effect of Framing and Normative Messages in Building Support for Climate Policies," PLOS ONE, Public Library of Science, vol. 9(12), pages 1-19, December.
    5. Ruwan Bandara & Mario Fernando & Shahriar Akter, 2020. "Privacy concerns in E-commerce: A taxonomy and a future research agenda," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 629-647, September.
    6. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
    7. Katharina Dowling & Daniel Guhl & Daniel Klapper & Martin Spann & Lucas Stich & Narine Yegoryan, 2020. "Behavioral biases in marketing," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 449-477, May.
    8. Gerda Ana Melnik-Leroy & Gintautas Dzemyda, 2021. "How to Influence the Results of MCDM?—Evidence of the Impact of Cognitive Biases," Mathematics, MDPI, vol. 9(2), pages 1-25, January.
    9. Tawfiq Alashoor & Mark Keil & H. Jeff Smith & Allen R. McConnell, 2023. "Too Tired and in Too Good of a Mood to Worry About Privacy: Explaining the Privacy Paradox Through the Lens of Effort Level in Information Processing," Information Systems Research, INFORMS, vol. 34(4), pages 1415-1436, December.
    10. George Loewenstein & Ted O'Donoghue & Matthew Rabin, 2003. "Projection Bias in Predicting Future Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1209-1248.
    11. Stephane Hess & Andrew Daly & Richard Batley, 2018. "Revisiting consistency with random utility maximisation: theory and implications for practical work," Theory and Decision, Springer, vol. 84(2), pages 181-204, March.
    12. Delgado, Laura & Shealy, Tripp, 2018. "Opportunities for greater energy efficiency in government facilities by aligning decision structures with advances in behavioral science," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3952-3961.
    13. Dolan, P. & Hallsworth, M. & Halpern, D. & King, D. & Metcalfe, R. & Vlaev, I., 2012. "Influencing behaviour: The mindspace way," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 264-277.
    14. Víctor Alberto Pena & Alina Gómez-Mejía, 2019. "Effect of the anchoring and adjustment heuristic and optimism bias in stock market forecasts," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 11(2), pages 389-409, November.
    15. Alessandro Acquisti & Leslie K. John & George Loewenstein, 2013. "What Is Privacy Worth?," The Journal of Legal Studies, University of Chicago Press, vol. 42(2), pages 249-274.
    16. Sullivan, Yulia W. & Kim, Dan J., 2018. "Assessing the effects of consumers’ product evaluations and trust on repurchase intention in e-commerce environments," International Journal of Information Management, Elsevier, vol. 39(C), pages 199-219.
    17. Marreiros, Helia & Tonin, Mirco & Vlassopoulos, Michael & Schraefel, M.C., 2017. "“Now that you mention it”: A survey experiment on information, inattention and online privacy," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 1-17.
    18. Miriam Krieger & Stefan Felder, 2013. "Can Decision Biases Improve Insurance Outcomes? An Experiment on Status Quo Bias in Health Insurance Choice," IJERPH, MDPI, vol. 10(6), pages 1-18, June.
    19. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    20. Dan Ariely & Kristina Shampan'er, 2006. "How small is zero price? : the true value of free products," Working Papers 06-16, Federal Reserve Bank of Boston.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:26:y:2015:i:4:p:639-655. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.