Putting the privacy paradox to the test

Abstract

Research shows that people's use of computers and mobile phones is often characterized by a privacy paradox: Their self-reported concerns about their online privacy appear to be in contradiction with their often careless online behaviors. Earlier research into the privacy paradox has a number of caveats. Most studies focus on intentions rather than behavior and the influence of technical knowledge, privacy awareness, and financial resources is not systematically ruled out. This study therefore tests the privacy paradox under extreme circumstances, focusing on actual behavior and eliminating the effects of a lack of technical knowledge, privacy awareness, and financial resources. We designed an experiment on the downloading and usage of a mobile phone app among technically savvy students, giving them sufficient money to buy a paid-for app. Results suggest that neither technical knowledge and privacy awareness nor financial considerations affect the paradoxical behavior observed in users in general. Technically-skilled and financially independent users risked potential privacy intrusions despite their awareness of potential risks. In their considerations for selecting and downloading an app, privacy aspects did not play a significant role; functionality, app design, and costs appeared to outweigh privacy concerns.