research-article

A Theory of Pricing Private Data

Authors:

Daniel Yang Li,

Dan SuciuAuthors Info & Claims

ACM Transactions on Database Systems (TODS), Volume 39, Issue 4

Article No.: 34, Pages 1 - 28

https://doi.org/10.1145/2691190.2691191

Published: 30 December 2014 Publication History

Abstract

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 the 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 awareness of the value of 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 article 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 pricing function and micropayments, and characterize valid solutions.

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Cited By

Si MPei J(2024)Counterfactual Explanation of Shapley Value in Data CoalitionsProceedings of the VLDB Endowment10.14778/3681954.368200417:11(3332-3345)Online publication date: 1-Jul-2024
https://dl.acm.org/doi/10.14778/3681954.3682004
Li ZDing BYao LLi YXiao XZhou J(2024)Performance-Based Pricing for Federated Learning via AuctionProceedings of the VLDB Endowment10.14778/3648160.364816917:6(1269-1282)Online publication date: 1-Feb-2024
https://dl.acm.org/doi/10.14778/3648160.3648169
Ke WLiu YWang JFang ZChi ZGuo YWang RWang P(2024)DecentralDC: Assessing data contribution under decentralized sharing and exchange blockchainPLOS ONE10.1371/journal.pone.031074719:10(e0310747)Online publication date: 24-Oct-2024
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Index Terms

A Theory of Pricing Private Data
1. Information systems
  1. Information systems applications

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Published In

cover image ACM Transactions on Database Systems

ACM Transactions on Database Systems Volume 39, Issue 4

Invited Articles Issue, SIGMOD 2013, PODS 2013 and ICDT 2013

December 2014

341 pages

ISSN:0362-5915

EISSN:1557-4644

DOI:10.1145/2691190

Editor:
Christian S. Jensen
Aalborg University, Denmark

Issue’s Table of Contents

Copyright © 2014 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Association for Computing Machinery

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Publication History

Published: 30 December 2014

Accepted: 01 August 2014

Revised: 01 August 2014

Received: 01 October 2013

Published in TODS Volume 39, Issue 4

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Funding Sources

NSF CNS-0964094
European Research Council under the Webdam grant
NSF CNS-1012748
NSF IIS-0915054 and NSF CCF-1047815

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Cited By

Si MPei J(2024)Counterfactual Explanation of Shapley Value in Data CoalitionsProceedings of the VLDB Endowment10.14778/3681954.368200417:11(3332-3345)Online publication date: 1-Jul-2024
https://dl.acm.org/doi/10.14778/3681954.3682004
Li ZDing BYao LLi YXiao XZhou J(2024)Performance-Based Pricing for Federated Learning via AuctionProceedings of the VLDB Endowment10.14778/3648160.364816917:6(1269-1282)Online publication date: 1-Feb-2024
https://dl.acm.org/doi/10.14778/3648160.3648169
Ke WLiu YWang JFang ZChi ZGuo YWang RWang P(2024)DecentralDC: Assessing data contribution under decentralized sharing and exchange blockchainPLOS ONE10.1371/journal.pone.031074719:10(e0310747)Online publication date: 24-Oct-2024
https://doi.org/10.1371/journal.pone.0310747
Bi XYang MAdomavicius G(2024)Consumer Acquisition for Recommender SystemsInformation Systems Research10.1287/isre.2023.122935:1(339-362)Online publication date: 1-Mar-2024
https://dl.acm.org/doi/10.1287/isre.2023.1229
Filipczuk DGerding EKonstantinidis G(2024)Graph Theory for Consent Management: A New Approach for Complex Data FlowsACM SIGMOD Record10.1145/3665252.366526553:1(55-63)Online publication date: 14-May-2024
https://dl.acm.org/doi/10.1145/3665252.3665265
Luo XPei JXu CZhang WXu J(2024)Fast Shapley Value Computation in Data Assemblage Tasks as Cooperative Simple GamesProceedings of the ACM on Management of Data10.1145/36393112:1(1-28)Online publication date: 26-Mar-2024
https://dl.acm.org/doi/10.1145/3639311
Gao JWang ZWei X(2024)An Adaptive Pricing Framework for Real-Time AI Model Service ExchangeIEEE Transactions on Network Science and Engineering10.1109/TNSE.2024.343291711:5(5114-5129)Online publication date: Sep-2024
https://doi.org/10.1109/TNSE.2024.3432917
Zhang MLi XMiao YLuo BXu WRen YDeng R(2024)Privacy-Preserved Data Disturbance and Truthfulness Verification for Data TradingIEEE Transactions on Information Forensics and Security10.1109/TIFS.2024.340216219(5545-5560)Online publication date: 2024
https://doi.org/10.1109/TIFS.2024.3402162
Zhang MLi XRen YLuo BMiao YLiu XDeng R(2024)Privacy-Preserved Data Trading Via Verifiable Data DisturbanceIEEE Transactions on Dependable and Secure Computing10.1109/TDSC.2023.332366921:4(3126-3140)Online publication date: Jul-2024
https://doi.org/10.1109/TDSC.2023.3323669
Fu YMiao XPeng HNa CDeng SYin J(2024)Online Query-Based Data Pricing with Time-Discounting Valuations2024 IEEE 40th International Conference on Data Engineering (ICDE)10.1109/ICDE60146.2024.00266(3449-3461)Online publication date: 13-May-2024
https://doi.org/10.1109/ICDE60146.2024.00266
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