The privacy paradox is a misnomer: data under structural uncertainty

Journal article

The infamous privacy paradox refers to the apparent inconsistency between people’s stated concern for privacy and their readiness to disclose personal information. This phenomenon has sparked two largely disconnected literatures: one offering experimental evidence of inconsistent behavior, and another providing qualitative accounts and defending the importance of privacy. The Article presents an online field experiment that bridges those literatures and shows that the so-called paradox arises from a mischaracterization of the underlying behavior. The Article finds that it is structural uncertainty about risk that drives seemingly paradoxical privacy decisions. It does so by isolating discounting mechanisms and empirically testing whether observed privacy choices reflect temptation or rational responses to uncertainty. The results suggest that privacy behavior is not paradoxical but, rather, consistent with choices shaped by incomplete information. The Article then discusses the policy implications of this reframing. As privacy decisions stem from structural uncertainty, which operates as a market failure, regulation should aim to reduce that uncertainty. This supports regulation that prioritizes transparency—for people to assess the risks of data collection—and flexibility mechanisms that accommodate evolving contexts. Such reframing provides a new argument for the right to be forgotten, which allows people to revisit prior disclosures as new risks become apparent. By shifting the focus from individual inconsistency to structural uncertainty, the findings call for privacy law to better reflect the reality of people’s decision-making environments.

Authors: Cofone, I

• Publication status: Accepted
• Peer review status: Peer reviewed
• Publisher: Georgetown Law
• Journal: Georgetown Law Technology Review
• Acceptance date: 2025-10-11
• DOI: 10.2139/ssrn.6030275
• Language: English
• Keywords: decision-making under risk; decision-making under uncertainty; hyperbolic discounting; privacy paradox; information privacy; nudging; transparency; privacy policies; right to be forgotten