Privacy is the price most consumers pay for free apps, and that’s not always desirable. If given the choice, most consumers would want to opt out of data tracking in order to maintain privacy, and for now that price appears to be a $5 per app. With an average of 23 apps per users, the US app market could rake in around $16 billion – much more than today’s typical in-app advertising with brings in $.15 or less per download.
These numbers come from a recent study by economists at the University of Colorado, Scott J. Savage and Donald M. Waldman. In their study, they were able to evaluate the price of privacy based on the type of information users were willing to pay to keep private or untracked: Read more