To Bid or Not to Bid: Using Auctions to Understand User Valuation of Digital Accounts

Most digital service providers offer free accounts to users and then generate revenue by monetizing the data provided by them. However, the way users derive value from their accounts and what factors affect their valuation needs further scrutiny. In this study, we used a novel auction-based methodology to understand users’ valuation of their digital accounts and how this relates to their security decision-making. We conducted a behavioral economics study with n = 66 participants at two university campuses to assess their reasons for being willing to provide researchers with their digital accounts’ credentials in exchange for money – hence, compromising security and privacy protection – and what contextual factors governed their decision-making. We found that the main factors influencing participants’ valuation of their accounts were their beliefs about data and privacy, envisioned threats, and the account properties and utility. Finally, we discuss the context-dependent nature of these factors and their implication on future research.