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The Privacy Calculus theory, formerly known as the behaviour calculus, implies that individuals consider future reactions. Economically, this means that the related costs and advantages are weighed. In the privacy context, the cost is frequently associated with specific dangers that might arise from the exposure of information. Thus, individuals are involved in an autonomous risk-benefit analysis or deal-off when they are faced with the communication of personal information. Some people characterise perceived privacy risks as the recipient's possible opportunistic behaviour that might take place when a person reveals his/her personal details resulting to a possible loss of control. This can take the shape of secondary use (e.g., the sale or sharing with third parties of personal information), illegal access, theft, etc. The Privacy Calculus idea is commonly utilised or combined with other theories to describe the trade-off between risk and reward. Therefore, it is found, that the Privacy Calculus theory is often associated with the “[https://en.wikipedia.org/wiki/Utility_maximization_problem Utility Maximization theory]”, “[https://www.managementstudyguide.com/expectancy-theory-motivation.htm Expectancy theory of motivation]”, and “[https://en.wikipedia.org/wiki/Expectancy-value_theory Expectancy-value theory]”.
 
The Privacy Calculus theory, formerly known as the behaviour calculus, implies that individuals consider future reactions. Economically, this means that the related costs and advantages are weighed. In the privacy context, the cost is frequently associated with specific dangers that might arise from the exposure of information. Thus, individuals are involved in an autonomous risk-benefit analysis or deal-off when they are faced with the communication of personal information. Some people characterise perceived privacy risks as the recipient's possible opportunistic behaviour that might take place when a person reveals his/her personal details resulting to a possible loss of control. This can take the shape of secondary use (e.g., the sale or sharing with third parties of personal information), illegal access, theft, etc. The Privacy Calculus idea is commonly utilised or combined with other theories to describe the trade-off between risk and reward. Therefore, it is found, that the Privacy Calculus theory is often associated with the “[https://en.wikipedia.org/wiki/Utility_maximization_problem Utility Maximization theory]”, “[https://www.managementstudyguide.com/expectancy-theory-motivation.htm Expectancy theory of motivation]”, and “[https://en.wikipedia.org/wiki/Expectancy-value_theory Expectancy-value theory]”.
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== Originating authors: ==
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Laufer and Wolfe (1977)
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== Diagrammatic representation: ==
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[[File:Privacy Calculus Theory.png|none|frame|Privacy Calculus Theory]]
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