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Related Experiment Videos

Pricing and disseminating customer data with privacy awareness.

Xiao-Bai Li1, Srinivasan Raghunathan2

  • 1Department of Operations & Information Systems, University of Massachusetts Lowell, United States.

Decision Support Systems
|May 20, 2014
PubMed
Summary

Organizations face a privacy-utility tradeoff when sharing sensitive customer data. This study introduces a mechanism to price and distribute data, ensuring users reveal true intentions and protecting individual privacy during data sharing.

Keywords:
Data analyticsData miningIncentive compatibilityPricingPrivacy

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Area of Science:

  • Economics
  • Information Science
  • Computer Science

Background:

  • Organizations frequently share customer data for competitive advantage and to meet third-party requests.
  • Protecting individual privacy is critical when disseminating sensitive customer information.
  • Existing research often focuses on data collection privacy, not data distribution challenges.

Purpose of the Study:

  • To analyze the privacy-utility tradeoff from the data owner's perspective.
  • To develop an incentive-compatible mechanism for pricing and disseminating private data.
  • To address privacy concerns in data distribution when data usage purposes are unclear.

Main Methods:

  • Economic analysis of data privacy mechanisms.
  • Development of an incentive-compatible pricing and dissemination model.
  • Game theory principles applied to data user motivation.

Main Results:

  • The proposed mechanism incentivizes data users to reveal their true data usage purposes.
  • The mechanism facilitates the dissemination of private data while managing the privacy-utility tradeoff.
  • It enables data owners to price data effectively based on user needs.

Conclusions:

  • An incentive-compatible mechanism can balance data utility and privacy in data distribution.
  • This approach helps organizations navigate the complexities of sharing sensitive customer data.
  • It provides a framework for secure and purposeful data dissemination to third parties.