Online privacy controls are a double edged sword in crowdfunding

What is it about?

Through a large-scale randomized experiment, we should that providing campaign backers with privacy controls (the ability to anonymize themselves or conceal contribution amounts with each campaign contribution) actually reduces willingness to transact but increases average contributions. Willingness to transact declines because seeing these features causes individuals to think more about privacy and security. At the same time, the ability to conceal information from others increases crowdfunders' willingness to supply large amounts of money.

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Why is it important?

Although online users often wish to have control over their information, providing such features is a double edged sword.