  This paper initiates the study of the testable implications of choice data in
settings where agents have privacy preferences. We adapt the standard
conceptualization of consumer choice theory to a situation where the consumer
is aware of, and has preferences over, the information revealed by her choices.
The main message of the paper is that little can be inferred about consumers'
preferences once we introduce the possibility that the consumer has concerns
about privacy. This holds even when consumers' privacy preferences are assumed
to be monotonic and separable. This motivates the consideration of stronger
assumptions and, to that end, we introduce an additive model for privacy
preferences that does have testable implications.
