Building consumer trust online
Communications of the ACM
Web Privacy with P3p
Why we can't be bothered to read privacy policies models of privacy economics as a lemons market
ICEC '03 Proceedings of the 5th international conference on Electronic commerce
Building Effective Online Marketplaces with Institution-Based Trust
Information Systems Research
Trust and TAM in online shopping: an integrated model
MIS Quarterly
A Research Agenda for Trust in Online Environments
Journal of Management Information Systems
A business privacy model for virtual communities
International Journal of Web Based Communities
Regulating Privacy in Wireless Advertising Messaging: FIPP Compliance by Policy vs. by Design
PETS '09 Proceedings of the 9th International Symposium on Privacy Enhancing Technologies
Knowing your customers: Using a reciprocal relationship to enhance voluntary information disclosure
Decision Support Systems
An Economic Analysis of the Software Market with a Risk-Sharing Mechanism
International Journal of Electronic Commerce
The Role of Push-Pull Technology in Privacy Calculus: The Case of Location-Based Services
Journal of Management Information Systems
Investigating online information disclosure: Effects of information relevance, trust and risk
Information and Management
Cost and benefit analysis of authentication systems
Decision Support Systems
International Journal of Electronic Commerce
The Signaling Role of IT Features in Influencing Trust and Participation in Online Communities
International Journal of Electronic Commerce
No Free Lunch: Price Premium for Privacy Seal-Bearing Vendors
Journal of Management Information Systems
Journal of Management Information Systems
What makes bloggers share knowledge? An investigation on the role of trust
International Journal of Information Management: The Journal for Information Professionals
A Value Sensitive Design Investigation of Privacy Enhancing Tools in Web Browsers
Decision Support Systems
Privacy intrusiveness and web audiences: Empirical evidence
Telecommunications Policy
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Trust is particularly important in online markets to facilitate the transfer of sensitive consumer information to online retailers. In electronic markets, various proposals have been made to facilitate these information transfers. We develop analytic models of hidden information to analyze the effectiveness of these regimes to build trust and their efficiency in terms of social welfare. We find that firms' ability to influence consumer beliefs about trust depends on whether firms can send unambiguous signals to consumers regarding their intention of protecting privacy. Ambiguous signals can lead to a breakdown of consumer trust, while the clarity and credibility of the signal under industry self-regulation can lead to enhanced trust and improved social welfare. Our results also indicate that although overarching government regulations can enhance consumer trust, regulation may not be socially optimal in all environments because of lower profit margins for firms and higher prices for consumers.