While privacy is a highly cherished value, few would argue with the notion that absolute privacy is unattainable. Individuals make choices in which they surrender a certain degree of privacy in exchange for outcomes that are perceived to be worth the risk of information disclosure. This research attempts to better understand the delicate balance between privacy risk beliefs and confidence and enticement beliefs that influence the intention to provide personal information necessary to conduct transactions on the Internet. A theoretical model that incorporated contrary factors representing elements of a privacy calculus was tested using data gathered from 369 respondents. Structural equations modeling (SEM) using LISREL validated the instrument and the proposed model. The results suggest that although Internet privacy concerns inhibit e-commerce transactions, the cumulative influence of Internet trust and personal Internet interest are important factors that can outweigh privacy risk perceptions in the decision to disclose personal information when an individual uses the Internet. These findings provide empirical support for an extended privacy calculus model.

Recently, several researchers provided overarching macromodels to explain individuals’ privacy-related decision making. These macromodels—and almost all of the published privacy-related information systems (IS) studies to date—rely on a covert assumption: responses to external stimuli result in deliberate analyses, which lead to fully informed privacy-related attitudes and behaviors. The most expansive of these macromodels, labeled “Antecedents–Privacy Concerns–Outcomes” (APCO), reflects this assumption. However, an emerging stream of IS research demonstrates the importance of considering principles from behavioral economics (such as biases and bounded rationality) and psychology (such as the elaboration likelihood model) that also affect privacy decisions. We propose an enhanced APCO model and a set of related propositions that consider both deliberative (high-effort) cognitive responses (the only responses considered in the original APCO model) and low-effort cognitive responses inspired by frameworks and theories in behavioral economics and psychology. These propositions offer explanations of many behaviors that complement those offered by extant IS privacy macromodels and the information privacy literature stream. We discuss the implications for research that follow from this expansion of the existing macromodels.