When social accounts work: evidence from ultimatum games

This paper examines the mitigating effect of social accounts on retaliatory behavior in a miniultimatum game setting. Results from games with 108 German high school students support the hypothesis that an ex ante informational and sensitive message can decrease an individuals’ negative perception of an unfair offer and increase the acceptance of the outcome. Furthermore, the moderating effect of gender on retaliatory behavior is investigated. We show that an informational and sensitive message makes more of a difference for women in accepting unfair distributions than it does for men.

Investigating the value of privacy on online social networks: conjoint analysis

Popularity of Online Social Networks has been recently overshadowed by the privacy problems they pose. Users are getting increasingly vigilant concerning information they disclose and are strongly opposing the use of their information for commercial purposes. Nevertheless, as long as the network is offered to users for free, providers have little choice but to generate revenue through personalized advertising to remain financially viable. Our study empirically investigates the ways out of this deadlock. Using conjoint analysis we find that privacy is indeed important for users. We identify three groups of users with different utility patterns: Unconcerned Socializers, Control-conscious Socializers and Privacy-concerned. Our results provide relevant insights into how network providers can capitalize on different user preferences by specifically addressing the needs of distinct groups in the form of various premium accounts. Overall, our study is the first attempt to assess the value of privacy in monetary terms in this context.