Direkt zur zweiten Navigationsebene, fallls vorhanden.Direkt zum Seiteninhalt
www.m-chair.net | @mchair | Imprint | Sitemap
Logo - Johann Wolfgang Goethe University Frankfurt
Deutsche Telekom Chair of Mobile Business & Multilateral SecurityDeutsche TelekomDeutsche Telekom Chair of Mobile Business & Multilateral Security
Deutsche Telekom Chair of Mobile Business & Multilateral SecurityTeachingCourses in SS 05

Course in SS 05
Economic Implications of On-line Privacy

 
» Hide Content, Outline, Literature «
Content of the Course: Online applications process vast amounts of personal information. Merchants track their customers, firms collect any personal data for customer profiling, and banks use personal details for fraud prevention and detection. Behind the scenes, profile information is traded between firms. With the advent of mobile applications in wireless networks, profiling can even include information about a person’s whereabouts. Thus, data protection officers, law-makers and pressure groups focus on on-line privacy. Privacy-enhancing technologies (PET) are being developed to improve a person’s control over his or her personal data in on-line environments. However, up to date there is little economic reasoning about the amount of privacy and hence, PET, needed to successfully deploy a business model. This seminar reviews past and contemporary research in the field of economic implications of on-line privacy.
Agenda: 1. Privacy Enhancing Technologies: State of the Art and their Application. This topic will research and summarize current privacy technology and its application to on-line applications.
* G. W. Blarkom, J. Borking and J. Olk, Handbook of Privacy and Privacy-Enhancing Technologies. The Hague: College bescherming persoonsgegevens,2003;
* L. J. Camp and C. A. Osorio, "Privacy-enhancing technologies for Internet commerce," in Trust in the network economy, O. Petrovic, Ed. Wien: Springer, 2003, pp. 317-331.

2. On-line privacy versus price discrimination. Is there a trade-off between customer loyalty cards, airline miles and your privacy? Yes - there is price discrimination. This topic will review price discrimination under a privacy perspective.
* A. Odlyzko, Privacy, Economics, and Price Discrimination on the Internet (2003);
* A. Acquisti and H. Varian, "Conditioning Prices on Purchase History," forthcoming in Marketing Science, as update to August 2001 version. 2004.

3. Knowing the user: behaviour, stated preferences and typologies. What are the user needs for on-line privacy? How much extra cost are users ready to undertake for privacy-enhanced infrastructures? Which attitudes exists towards on-line privacy?
* A. Acquisti and J. Grossklags, "Privacy and Rationality: Preliminary Evidence from Pilot Data," in Proceedings of the 3rd annual workshop on economics and information security (WEIS) 2004;
* L. Fritsch and J. Muntermann, "Aktuelle Hinderungsgründe für den kommerziellen Erfolg von Location-based Service-Angeboten," in Proceedings der Konferenz Mobile Commerce Technologien und Anwendungen (MCTA), Bonn: Gesellschaft für Informatik, 2005;
* S. Spiekermann, "Die Konsumenten der Anonymität," Datenschutz und Datensicherheit (DuD). vol. 27, pp. 150-154, 3 2003;
* K. Sheehan, "Toward a Typology of Internet Users and Online Privacy Concerns," The Information Society. vol. 18, pp. 21-32, 1 2002;
* D. A. Karp, "Hiding in pornographic bookstores: A Reconsideration of the Nature of Urban Anonymity," Urban Life and Culture. vol. 1, pp. 427-451, 4 1973.

4. Cost and Benefit: Risks of suboptimal on-line privacy for users. According to popular belief, users do not care for their on-line privacy due to the fact of low risks. This topic will research consumer-side risks and costs of low privacy.
* P. Syverson, The Paradoxical Value of Privacy, 2nd Annual Workshop 'Economics and Information Security'; University of Maryland, May 2003;
* R. Gellman, Privacy, Consumers and Cost, download here, 2002;
* R. D. Petty, "Marketing Without Consent: Consumer Choice and Costs, Privacy, and Public Policy," Journal of Public Policy & Marketing. vol. 19, pp. 42-53, 1 2000.

5. Cost and Benefit: Cost of on-line privacy for businesses. Does it pay to deploy privacy-friendly technology on the business side? This topic will review mechanisms and effects of privacy in business models and business practice.
* The Cost of Privacy Study - Ponemon Institute. Tucson, Arizona, 2004;
* E. J. Friedmann and P. Resnik, "The social cost of cheap pseudonyms," 1999.

6. Economic aspects of privacy. What has economic research found out about the value of privacy in business? Are there economic models that explain what happens on-line? This topic will present work done to answer these questions.
* H. Varian, "Economic aspects of personal privacy," in Privacy and Self-Regulation in the Information Age, Washington: U. S. Department of Commerce, 1997;
* A. Shostack, 'People Won't Pay For Privacy,' Reconsidered, 2nd Annual Workshop 'Economics and Information Security'; University of Maryland, May 2003, 2003;
* K. C. Laudon, "Markets and Privacy," Communications of the ACM. vol. 39, pp. 92-104, 9 1996.

7. Location-based Services vs. Privacy. Mobile applications aim at location data to provide context-sensitive, personalized services. How sensitive is location data, and what can be done to satisfy all parties' interests in LBS?
* R. Clarke, Person-Location and Person-Tracking: Technologies, Risks and Policy Implications. Canberra: 2000;
* T. Koelsch, L. Fritsch, M. Kohlweiss and D. Kesdogan, Privacy for Profitable Location Based Services. Berlin: Springer,2005.

8. How to tell: Consumer Assurance, Seals and Certification of Privacy Properties. How can a service communicate - or market - its privacy-friendly features to create competitive advantage? Whichs tools and methods are available to create assurance to users of on-line technology? This topic will review technological, certification, legal and other approaches.
* G. R. Milne and M. J. Culnan, "Using the Content of Online Privacy Notices to Inform Public Policy: A Longitudinal Analysisof the 1998–2001 U.S. Web Surveys," The Information Society. vol. 345-359, 18 2002;
* A. I. Antón, J. B. Earp and A. Reese, "Analyzing Website Privacy Requirements Using a Privacy Goal Taxonomy," in Proceedings of the IEEE Joint International Requirements Engineering Conference 2002, IEEE Computer Society, Ed. Essen: IEEE Computer Society, 2002, pp. 605-612;
* T. Vila, R. Greenstadt and D. Molnar, "Why we can't be bothered to read privacy policies: models of privacy economics as a lemons market," in ICEC '03: Proceedings of the 5th international conference on Electronic commerce, Pittsburgh, USA: ACM Press, 2003, pp. 403-407;
* M. Kohlweiss, L. Fritsch, M. Radmacher, M. Hansen and H. Krasemann, Overview of existing assurance methods. IST PRIME Project deliverable D5.1.a, 2004;

Unabhängiges Landeszentrum für Datenschutz Schleswig-Holstein, Datenschutz-Gütesiegel, 2003.