A Market for Unbiased Private Data: Paying Individuals According to Their Privacy Attitudes

17 Pages Posted: 28 Apr 2012

See all articles by Christina Aperjis

Christina Aperjis

Hewlett-Packard Enterprise - Social Computing Lab

Bernardo A. Huberman

Stanford University

Date Written: April 26, 2012

Abstract

Since there is, in principle, no reason why third parties should not pay individuals for the use of their data, we introduce a realistic market that would allow these payments to be made while taking into account the privacy attitude of the participants. And since it is usually important to use unbiased samples to obtain credible statistical results, we examine the properties that such a market should have and suggest a mechanism that compensates those individuals that participate according to their risk attitudes. Equally important, we show that this mechanism also benefits buyers, as they pay less for the data than they would if they compensated all individuals with the same maximum fee that the most concerned ones expect.

Keywords: privacy, markets for data

JEL Classification: C88, D82

Suggested Citation

Aperjis, Christina and Huberman, Bernardo A., A Market for Unbiased Private Data: Paying Individuals According to Their Privacy Attitudes (April 26, 2012). Available at SSRN: https://ssrn.com/abstract=2046861 or http://dx.doi.org/10.2139/ssrn.2046861

Christina Aperjis

Hewlett-Packard Enterprise - Social Computing Lab ( email )

1501 Page Mill Road
Palo Alto, CA 9434
United States

Bernardo A. Huberman (Contact Author)

Stanford University ( email )

Palo Alto, CA 94305
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
110
Abstract Views
680
rank
246,787
PlumX Metrics