Generative AI (GenAI) shifts data disclosure from a one-off act into an iterative co-creation process, where users repeatedly decide whether, what, and how much information to reveal and how it should be processed through prompts. We propose prompt literacy—the ability to strategically craft, interpret, and refine prompts—as a core dimension of AI literacy that determines how individuals navigate this process. Prompt literacy not only enhances perceived benefits by enabling more tailored and valuable outcomes, but also encourages deeper and more frequent disclosure, thereby heightening perceived risks. This dual effect creates an inherent tension in GenAI interactions. Our findings show that prompt literacy fosters self-investment in the disclosure process, which in turn shapes privacy value perceptions (i.e., the cumulative effect of benefits and risks). Through this self-investment, individuals perceive greater ownership of the outcomes, ultimately leading to more positive privacy value assessments. Notably, this positive effect is especially salient in data-rich contexts. By integrating insights from privacy, co-creation, and AI literatures, this research investigates key factors in privacy value formation and offers implications for the design of GenAI tools and literacy interventions. Johanna Zimmermann*, Jan H. Schumann, Yakov Bar, Koen Pauwels (*presenting author)

Economic narratives are pervasive in the public discourse and can shape individual behavior. But so far we know very little about whether house- holds actually demand and value narratives as information. We combine a large-scale expert survey with a nationally representative household sample in the U.S. to examine the demand for economic narratives in a high-stakes environment of an unprecedentedly high recession probability. We document a substantial willingness to pay for economic narratives of more than 4 USD, which is even higher than for numerical forecast information. The WTP systematically varies across demographics, being higher for women, younger, high-income, and high-education respondents. The dominant motives for acquiring narratives are intrinsic, but a smaller share also lists instrumental motives. Economic narratives shape respondents’ expectations about future economic conditions, their understanding of recession drivers, and their spending beliefs. Our findings underscore the potential of narratives as a tool to im- prove economic understanding and to foster more informed decision-making.