Do Concerns for Risks of Personal Data Leaks Impact Decision-Making in Finance?

Date : Jeudi | 2024-05-23 à 12h30
Lieu : Salle des thèses

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Mehdi LOUAFI (LEO, Université d’Orléans)

Based on an experiment with participants from the general population, we examine the determinants of individuals' investment decisions in the presence of potential personal data leaks. We find that participants when presented with scenarios explicitly acknowledging the probability distribution and content of personal data leaks, tend to prioritize financial performance over the safeguarding of their personal data. However, we show that individuals adjust their preferences in favor of privacy when confronted with high risks of data leaks or low financial returns. Additionally, we observe that the magnitude of data leaks in previous rounds, as measured by the number of participants affected, decreases the likelihood of investing in options carrying privacy risks. While past exposures to data leaks at the aggregate level influence decision-making, individual experiences of data leaks in previous rounds do not significantly impact subsequent investment decisions. These findings contribute to our understanding of how individuals navigate complex trade-offs associated with privacy, shedding light on decision-making within the context of data security concerns and financial decisions.