A Theory of Pricing Private Data

Personal data has value to both its owner and to institutions who would like to analyze it. Privacy mechanisms protect the owner's data while releasing to analysts noisy versions of aggregate query results. But such strict protections of individual's data have not yet found wide use in practice. Instead, Internet companies, for example, commonly provide free services in return for valuable sensitive information from users, which they exploit and sometimes sell to third parties. As the awareness of the value of the personal data increases, so has the drive to compensate the end user for her private information. The idea of monetizing private data can improve over the narrower view of hiding private data, since it empowers individuals to control their data through financial means. In this paper we propose a theoretical framework for assigning prices to noisy query answers, as a function of their accuracy, and for dividing the price amongst data owners who deserve compensation for their loss of privacy. Our framework adopts and extends key principles from both differential privacy and query pricing in data markets. We identify essential properties of the price function and micro-payments, and characterize valid solutions.Comment: 25 pages, 2 figures. Best Paper Award, to appear in the 16th International Conference on Database Theory (ICDT), 201

Privacy Management and Optimal Pricing in People-Centric Sensing

With the emerging sensing technologies such as mobile crowdsensing and Internet of Things (IoT), people-centric data can be efficiently collected and used for analytics and optimization purposes. This data is typically required to develop and render people-centric services. In this paper, we address the privacy implication, optimal pricing, and bundling of people-centric services. We first define the inverse correlation between the service quality and privacy level from data analytics perspectives. We then present the profit maximization models of selling standalone, complementary, and substitute services. Specifically, the closed-form solutions of the optimal privacy level and subscription fee are derived to maximize the gross profit of service providers. For interrelated people-centric services, we show that cooperation by service bundling of complementary services is profitable compared to the separate sales but detrimental for substitutes. We also show that the market value of a service bundle is correlated with the degree of contingency between the interrelated services. Finally, we incorporate the profit sharing models from game theory for dividing the bundling profit among the cooperative service providers.Comment: 16 page

How to Balance Privacy and Money through Pricing Mechanism in Personal Data Market

A personal data market is a platform including three participants: data owners (individuals), data buyers and market maker. Data owners who provide personal data are compensated according to their privacy loss. Data buyers can submit a query and pay for the result according to their desired accuracy. Market maker coordinates between data owner and buyer. This framework has been previously studied based on differential privacy. However, the previous study assumes data owners can accept any level of privacy loss and data buyers can conduct the transaction without regard to the financial budget. In this paper, we propose a practical personal data trading framework that is able to strike a balance between money and privacy. In order to gain insights on user preferences, we first conducted an online survey on human attitude to- ward privacy and interest in personal data trading. Second, we identify the 5 key principles of personal data market, which is important for designing a reasonable trading frame- work and pricing mechanism. Third, we propose a reason- able trading framework for personal data which provides an overview of how the data is traded. Fourth, we propose a balanced pricing mechanism which computes the query price for data buyers and compensation for data owners (whose data are utilized) as a function of their privacy loss. The main goal is to ensure a fair trading for both parties. Finally, we will conduct an experiment to evaluate the output of our proposed pricing mechanism in comparison with other previously proposed mechanism

Setting Fair Prices – Fundamental Principle Of Sustainable Marketing

In commercial area, the price has a major importance, being frequently considered among the main criteria used in buying decision process. Price fairness derives from equity theory and it is focused on assuring in a transaction a reasonable report between the customer’s sacrifice and the value offered by the seller. In three marketing experiments we have evaluated customers’ fairness perceptions of differential prices, this tactic being frequently used by sellers. One important finding was that the motive for setting differential prices is important in fairness evaluation. Price differences based on social motives are perceived fairer than those motivated by company’s interest. The differential prices on customer category are perceived fairer than zone prices. In all three marketing experiments it was demonstrated that price fairness has a significant influence on value perception and on buying intentions. Fair prices setting is one of the principles sustainable marketing is based on, reflecting a long term orientation for a company. By following this decisional direction, the commercial firm increases the value offered to its customers and it becomes more socially responsible.sustainable development, sustainable marketing, fair price, price fairness, differential prices, distributive fairness, procedural fairness

40 Gbps Access for Metro networks: Implications in terms of Sustainability and Innovation from an LCA Perspective

In this work, the implications of new technologies, more specifically the new optical FTTH technologies, are studied both from the functional and non-functional perspectives. In particular, some direct impacts are listed in the form of abandoning non-functional technologies, such as micro-registration, which would be implicitly required for having a functioning operation before arrival the new high-bandwidth access technologies. It is shown that such abandonment of non-functional best practices, which are mainly at the management level of ICT, immediately results in additional consumption and environmental footprint, and also there is a chance that some other new innovations might be 'missed.' Therefore, unconstrained deployment of these access technologies is not aligned with a possible sustainable ICT picture, except if they are regulated. An approach to pricing the best practices, including both functional and non-functional technologies, is proposed in order to develop a regulation and policy framework for a sustainable broadband access.Comment: 10 pages, 6 Tables, 1 Figure. Accepted to be presented at the ICT4S'15 Conferenc