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49 Wake Forest L. Rev. 261 (2014)
Alan Westin's Privacy Homo Economicus

handle is hein.journals/wflr49 and id is 273 raw text is: ALAN WESTIN'S PRIVACY HOMO ECONOMICUS
Chris Jay Hoofnagle
Jennifer M. Urban*
INTRODUCTION
A regime of notice and choice largely governs U.S. Internet
privacy law.' Companies, long encouraged by regulators, issue
privacy policies2 for consumers to read and act upon. In theory,
* Chris Jay Hoofnagle is a lecturer in residence at the University of
California, Berkeley, School of Law, where he teaches computer crime law,
privacy, Internet law, and a seminar on the Federal Trade Commission.
** Jennifer M. Urban is an Assistant Clinical Professor of Law and
Director of the Samuelson Law, Technology & Public Policy Clinic at the
University of California, Berkeley, School of Law. She teaches and researches
in the fields of privacy, intellectual property, and information policy.
The authors thank Dr. Su Li, Dr. Joseph Turow, Jennifer King, Deirdre K.
Mulligan, Tal Zarsky, Michael Birnhack, our Princeton Survey Research
Associates colleagues, Larry Hugick and Margie Engle-Bauer, and Robert Barr
for support in framing questions, analyzing data, and raising funds for this
multiple-year effort. We thank each of these colleagues and participants in the
Berkeley Center for Law and Technology Privacy Law Forums, the Santa Clara
High Technology Law Journal's Mobile Revolutions symposium, the British
Columbia Privacy and Security Conference, the Amsterdam Privacy Conference,
the Brussels Computers, Privacy, and Data Protection Conference, and the
Wake Forest Law Review 2013 Symposium for comments and critiques. We
thank Chan Hee Chu for research assistance and the Wake Forest Law Review
editing team. We also thank the financial supporters of our survey research,
The Rose Foundation    for Communities and the Environment, Nokia
Corporation, and are grateful for additional funding from several cy pres funds.
No funder reviewed any of our survey instruments or reports in advance of their
posting or publication. In part, this Article collects and publishes survey results
and analysis posted online in a series of Berkeley Consumer Privacy Survey
reports, archived online at http://www.law.berkeley.edu/privacysurvey.htm. It
includes some data first published in short form in Jennifer Urban et al., Mobile
Payments: Consumer Benefits & New Privacy Concerns, EuR. FIN. REV. (Feb. 20,
2013), http://www.europeanfinancialreview.coml?p=6301.
1. ROBERT H. SLOAN & RICHARD WARNER, UNAUTHORIZED ACCESS: THE
CRISIS IN ONLINE PRIVACY AND SECURITY 79 (2014) (The 'notice' is the
presentation of terms, typically in a privacy policy or a terms-of-use agreement
[on a website]; the 'choice' is an action, typically using the site or clicking on an
'I agree' button, which is interpreted as the acceptance of the terms.).
2. Privacy policy adoption increased dramatically after the Federal Trade
Commission encouraged companies to develop and post them online. See FED.
TRADE COMM'N, PRIVACY ONLINE: FAIR INFORMATION PRACTICES IN THE

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