Behind the “Privacy Paradox”: Decreasing Disclosure by Viewing Information as a Constrained Resource

The issue of protecting consumer privacy has continued to grow in prominence over the past several years. Companies have grown increasingly sensitive to privacy concerns as the Federal Trade Commission has actively pursued companies that have more flagrantly violated the privacy rights of citizens, such as the case with Google’s $22.5 million fine for tracking unaware Safari browser users online. Yet at the same time, most individual consumers freely share information online that can get them into trouble, from General Petraeus’ reliance on Gmail to conduct his scandalous correspondence to employees fired for Facebook posts or tweets complaining about their employer or showcasing them in compromising circumstances. Although every change in privacy settings from Facebook generates considerable press, the majority of Facebook users who keep their profiles public reveal important, personal information that can be used for identity fraud—such as their birthday, e-mail addresses, and prior school names (Carrns 2012).