Transformations  in
Business & Economics

NEW INFORMATION ECONOMY IN POST-TRANSITION COUNTRIES: AN ECONOMIC APPROACH TO PRIVACY CONCERN
Ivan-Damir Anic, Jelena Budak, Edo Rajh

ABSTRACT. This research explores one particular issue for the development of new information economy and the application of advanced information technologies: the privacy concern in four Western Balkan post-transition countries. The main goal of policy-makers related to this issue is decreasing the consumers' concern regarding information privacy (CFIP) and increasing the willingness to provide personal information (WPI). However, there is no consensus as to which factors affect both variables, and how. Based on consumer survey data, this paper compares the relative effects of demographic variables, consumer attitudes and the institutional framework on CFIP and WPI. Results from two regression models show that CFIP and WPI are both affected by the perceived risk, institutional framework, and confidence in privacy protection. Other variables related to CFIP are education and employment, while WPI is additionally influenced by age and gender. Implications for privacy policy and approaches to reducing CFIP and increasing WPI are discussed in the paper.

KEYWORDS: information economy, information privacy concern, willingness to provide personal information, demographics, post-transition economies.

JEL classification: D18, P36.