Paying with your data. Privacy tradeoffs in ride-hailing services

ABSTRACT

We carried out a discrete choice experiment to test users’ readiness to co-finance a ride-hailing service using their personal data. We designed an experiment in which respondents were asked to choose between a regular service and hypothetical app-based taxi rides offering discounts in exchange for respondents consenting to their personal data being shared. Our analysis compared how awareness of rights stemming from the GDPR affects respondents’ privacy preferences. Cross-group analysis indicated that reminding users about their rights stemming from the GDPR significantly increases the value they ascribe to protection of personal data. The results of WTA analysis suggest that there is a market for ‘pay with your data’ business models.

KEYWORDS:

• Privacy
• gdpr
• dce
• mixed logit
• wta

JEL CLASSIFICATION:

• C25
• D12
• L51

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Notes

¹ All models were estimated in the preference space using the Apollo package in R (Hess and Palma 2019).

² Envisioned by the GDPR’s right to information. Before any processing of personal data takes place, a data subject has to be informed about the purposes for which data will be processed (among other things); about the data controller’s identity; about the recipients of the data subject’s personal data; and about the period of data storage (GDPR articles 14–15).

Additional information

Funding

This work was supported by the National Science Centre, Poland [2017/25/N/HS4/01214].