Privacy Regulation and Its Unintended Consequence on Consumption Behaviors: Evidence From CCPA

2023 | International Conference on Information Systems | Citations: 0

Authors: Bae, Donghwa; Mayya, Raveesh; Nian, Tingting

Abstract: This study explores the unintended consequences of data protection regulations ... Expand

Abstract: This study explores the unintended consequences of data protection regulations on consumer behavior. Specifically, we examine the California Consumer Privacy Act, which restricts companies from collecting Californians' personal information. Privacy regulations may limit firms' ability to suggest products aligned with consumers' taste predicted from data, potentially influencing subsequent consumer behavior. These regulations especially pose a challenge to digital platforms, as their success hinges on seamless data flow between firms and consumers. Using a difference-in-differences approach with transaction data, we find that post-CCPA, Californians reduce purchase by 4.1%, increase returns by 2.9%. Moreover, we find that Californians spend more time online and visit more webpages, potentially indicating increased search efforts. Mechanism analysis suggests that firms under CCPA proactively alter their data collection strategy to reduce the liability. These results reveal the complex interplay between privacy regulation and consumer behavior, highlighting the need for a nuanced understanding of the trade-offs between privacy protection and economic outcomes. Collapse

Topics: information privacy law legal context consumer behavior advertising management website

Methods: experimental group longitudinal research natural experiment archival research difference in differences

Law, Economics, and Privacy: Implications of Government Policies on Website and Third-Party Information Sharing

2023 | Information Systems Research | Citations: 0

Authors: Gopal, Ram D.; Hidaji, Hooman; Kutlu, Sule Nur; Patterson, Raymond A.; Yaraghi, Niam

Abstract: Widespread abuse of internet users’ privacy online has prompted user advocacy gr ... Expand

Abstract: Widespread abuse of internet users’ privacy online has prompted user advocacy groups to implore governments to intervene and protect consumer rights. To study such interventions’ effects, we examine data-protection policies that policy makers and governments can enforce on websites, including consent-based user information sharing and subsidizing competing websites. We use a stylized analytical model to examine such policies’ impact on the decisions and outcomes of websites, users, and third-parties. Interestingly, we find that even though a consent-based policy may improve user surplus, in the absence of market entry and exit (static market), it has the unintended consequence of increasing the number of third-parties and, thus, sharing of user information. We also determine that both consent-based and website subsidization policies may reduce competition by driving websites out of the market—to the detriment of user surplus and social welfare. To validate our analytical model’s findings, we empirically investigated the impact of a consent-based policy on third-parties in a natural experiment of the California Consumer Privacy Act. These findings raise significant implications for policy making surrounding online privacy. History: Giri Kumar Tayi, Senior Editor; Nachiketa Sahoo, Associate Editor. Funding: Financial support from the Social Sciences and Humanities Research Council of Canada is gratefully acknowledged. R. D. Gopal gratefully acknowledges support by the Gillmore Centre for Financial Technology at the Warwick Business School. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1178. Collapse

Topics: website information privacy concern data protection privacy legal context

Methods: mathematical model natural experiment experimental group longitudinal research time series analysis

Resilience of the U.S. Gig Economy during the COVID-19 Pandemic: Insights from Location Big Data

2021 | International Conference on Information Systems | Citations: 0

Authors: Basavaraj, Naveen; Foutz, Natasha; Li, Beibei

Abstract: The COVID19 pandemic has led to an unprecedented unemployment crisis. But new o ... Expand

Abstract: The COVID19 pandemic has led to an unprecedented unemployment crisis. But new op portunities emerged in gig economy to support a flexible form of labor participation. In our research, we study the response of gig economy to various pandemic mitigation poli cies. Leveraging novel, populationscale, and highfrequency location data, we present our evidence on the impact of COVID19 policies on gig economy. We find that (1) gig jobs remain resilient throughout the crisis, suffering fewer job losses than the traditional labor market; (2) the gig sector absorbed the nongig labor losses during the crisis; (3) the gig economy boosts resilience of the disadvantaged, curbing job losses more in Black neighborhoods; and (4) gig workers adapted their work hours to suit the populations' changing circadian rhythms. Our findings highlight the resilience of gig economy in the face of an unprecedented public health crisis and the importance of gig jobs to vulnerable populations. Collapse

Topics: platform worker pandemic geographic information system covid 19 global navigation satellite system

Methods: survey robustness check machine learning method archival research statistical hypothesis test

Theories: theory of economic crises

From panopticon to heautopticon: A new form of surveillance introduced by quantified‐self practices

2020 | Information Systems Journal | Citations: 0

Authors: De Moya, Jean‐François; Pallud, Jessie

Abstract: In this research, we investigate whether quantified-self (QS) technologies, base ... Expand

Abstract: In this research, we investigate whether quantified-self (QS) technologies, based on wearable technologies, enable individuals' empowerment or lead to their disempowerment. To understand better the potential paradoxical effects of QS technologies, we adopt a critical approach by mobilising the panopticon metaphor from Foucault's original writings and more precisely, his four core concepts, namely power, knowledge, body and space. Relying on a qualitative study that consists of the analysis of 12 interviews, 14 142 messages extracted from online forums, and 30 blogs, we explore the discourses associated with the usage of QS technologies. Our findings indicate that self-quantification has ambivalent, conflicting effects—13 empowering and 11 disempowering—spanning the dimensions of power, knowledge, body and space. Our research also shows the emergence of microsurveillance of oneself, which we name the heautopticon. The implications of this critical research also offer possibilities for change by discussing social and individual emancipation. Collapse

Topics: blog smart wearable device privacy online community legal context

Methods: qualitative interview self quantification literature study qualitative coding personal interview

Theories: social sciences theory