[telecom] Transaction costs, privacy, and trust: The laudable goals and ultimate failure...

Have a question or want to start a discussion? Post it! No Registration Necessary.  Now with pictures!

Transaction costs, privacy, and trust: The laudable goals and  
ultimate failure of notice and choice to respect privacy online

Kirsten Martin
Volume 18, Number 12
2 December 2013

Abstract

The goal of this paper is to outline the laudable goals and ultimate  
failure of notice and choice to respect privacy online and suggest an  
alternative framework to manage and research privacy. This paper  
suggests that the online environment is not conducive to rely on  
explicit agreements to respect privacy. Current privacy concerns  
online are framed as a temporary market failure resolvable through  
two options: (a) ameliorating frictions within the current notice and  
choice governance structure or (b) focusing on brand name and  
reputation outside the current notice and choice mechanism. The shift  
from focusing on notice and choice governing simple market exchanges  
to credible contracting where identity, repeated transactions, and  
trust govern the information exchange rewards firms who build a  
reputation around respecting privacy expectations. Importantly for  
firms, the arguments herein shift the firm's responsibility from  
adequate notice to identifying and managing the privacy norms and  
expectations within a specific context.

Contents

Introduction
Privacy online, second exchanges, and transaction costs
Why notice and choice fails
Possible remedies for privacy online
Developing a privacy reputation: Privacy in practice
Implications for practice and research
Conclusion


http://firstmonday.org/ojs/index.php/fm/article/view/4838/3802

Site Timeline