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IoT Marketplace: Willingness-To-Pay vs. Willingness-To-Accept

Authors: Shakthidhar Gopavaram; Jayati Dev; Sanchari Das; L. Jean Camp;

IoT Marketplace: Willingness-To-Pay vs. Willingness-To-Accept

Abstract

Willingness-To-Pay (WTP) is the most a person is willing to pay for a good or service. Conversely, Willingness-To-Accept (WTA) is the minimum amount a person is willing to accept for giving up a good or service. People often attribute a higher value for privacy in the WTA condition when compared to the WTP condition. In behavioral economics of privacy and security, this discrepancy between WTP and WTA has been explained by the endowment effect and the status-quo bias. In this study, we aim to emulate the effects of WTP and WTA through interface design. Specifically, we employed the principles of status-quo bias to build two versions of the IoT Marketplace. While one design of the marketplace emulated the WTA condition, the other emulated the WTP condition. In both versions of the marketplace, we communicated the aggregate privacy rating associated with the IoT device using the same indicator. We evaluated the effect the two interfaces had on product selection by conducting a study where participants were asked to purchase an IoT device using either a WTA interface or a WTP interface. Our results show that participants using the interface that emulated the WTA condition were more likely to pay a premium to purchase devices with a higher privacy rating when compared to the participants using the interface that emulated the WTP condition. We also append results showing that when asked to select items without making the purchases the same effect was more pronounced.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
6
Top 10%
Average
Average
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