Algorithms to the Rescue: Market Mechanisms for Consensual Trading of Unbiased Individual Data

Published Online:https://doi.org/10.1287/isre.2024.1115

References

  • Acemoglu D, Makhdoumi A, Malekian A, Ozdaglar A (2022) Too much data: Prices and inefficiencies in data markets. Amer. Econom. J. Microeconomics 14(4):218–256.CrossrefGoogle Scholar
  • Agarwal A, Dahleh M, Sarkar T (2019) A marketplace for data: An algorithmic solution. Proc. 2019 ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 701–726.Google Scholar
  • Ali SN, Lewis G, Vasserman S (2023) Voluntary disclosure and personalized pricing. Rev. Econom. Stud. 90(2):538–571.CrossrefGoogle Scholar
  • Arnold BC, Balakrishnan N, Nagaraja HN (2008) A First Course in Order Statistics (SIAM, Philadelphia).CrossrefGoogle Scholar
  • Baranov O, Aperjis C, Ausubel LM, Morrill T (2017) Efficient procurement auctions with increasing returns. Amer. Econom. J. Microeconomics 9(3):1–27.CrossrefGoogle Scholar
  • Bergemann D, Bonatti A (2019) Markets for information: An introduction. Annual Rev. Econom. 11(1):85–107.CrossrefGoogle Scholar
  • Bichler M, Davenport A, Hohner G, Kalagnanam J (2006) Industrial procurement auctions. Cramton P, Shoham Y, Steinberg R, eds. Combinatorial Auctions (MIT Press, Cambridge, MA), 593–612.Google Scholar
  • Bimpikis K, Crapis D, Tahbaz-Salehi A (2019) Information sale and competition. Management Sci. 65(6):2646–2664.LinkGoogle Scholar
  • Binswanger HP (1981) Attitudes toward risk: Theoretical implications of an experiment in rural India. Econom. J. 91(364):867–890.Google Scholar
  • Chatterjee A, Sengupta I (2020) Sorting of fully homomorphic encrypted cloud data: Can partitioning be effective? IEEE Trans. Services Comput. 13(3):545–558.CrossrefGoogle Scholar
  • Chen Y, Zheng S (2019) Prior-free data acquisition for accurate statistical estimation. Proc. 2019 ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 659–677.Google Scholar
  • Chen Y, Berkhin P, Anderson B, Devanur NR (2011) Real-time bidding algorithms for performance-based display ad allocation. Proc. 17th ACM SIGKDD Internat. Conf. Knowledge Discovery Data Mining (Association for Computing Machinery, New York), 1307–1315.Google Scholar
  • Chen RR, Roundy RO, Zhang RQ, Janakiraman G (2005) Efficient auction mechanisms for supply chain procurement. Management Sci. 51(3):467–482.LinkGoogle Scholar
  • Chen Y, Immorlica N, Lucier B, Syrgkanis V, Ziani J (2018) Optimal data acquisition for statistical estimation. Proc. 2018 ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 27–44.Google Scholar
  • Cheng K, Shen Y, Zhang Y, Zhu X, Wang L, Zhong H (2019) Towards efficient privacy-preserving auction mechanism for two-sided cloud markets. ICC 2019 2019 IEEE Internat. Conf. Comm. (ICC) (IEEE, Piscataway, NJ), 1–6.Google Scholar
  • Choi JP, Jeon DS, Kim BC (2019) Privacy and personal data collection with information externalities. J. Public Econom. 173(C):113–124.CrossrefGoogle Scholar
  • Chu LY, Shen ZJM (2008) Truthful double auction mechanisms. Oper. Res. 56(1):102–120.LinkGoogle Scholar
  • Cisco (2021) Building consumer confidence through transparency and control. Accessed November 20, 2021, https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-cybersecurity-series-2021-cps.pdf.Google Scholar
  • Clarke EH (1971) Multipart pricing of public goods. Public Choice 11(1):17–33.CrossrefGoogle Scholar
  • Cummings R, Feldman V, McMillan A, Talwar K (2022) Mean estimation with user-level privacy under data heterogeneity. Koyejo S, Mohamed S, Agarwal A, Belgrave D, Cho K, Oh A, eds. Advances in Neural Information Processing Systems, vol. 35 (Curran Associates, Inc., New York), 29139–29151.Google Scholar
  • Cummings R, Elzayn H, Pountourakis E, Gkatzelis V, Ziani J (2023) Optimal data acquisition with privacy-aware agents. 2023 IEEE Conf. Secure Trustworthy Machine Learn. (SaTML) (IEEE, Piscataway, NJ), 210–224.Google Scholar
  • Cummings R, Ligett K, Roth A, Wu ZS, Ziani J (2015) Accuracy for sale: Aggregating data with a variance constraint. Proc. 2015 Conf. Innovations Theoret. Comput. Sci. (Association for Computing Machinery, New York), 317–324.Google Scholar
  • Datarade (2022) Reklaim—Instantly purchasable datasets. Accessed January 20, 2023, https://www.reklaimyours.com/partners.Google Scholar
  • Dekel O, Fischer F, Procaccia AD (2010) Incentive compatible regression learning. J. Comput. System Sci. 76(8):759–777.CrossrefGoogle Scholar
  • Dwork C (2006) Differential privacy. Internat. Colloquium Automata Languages Programming (Springer, Berlin, Heidelberg), 1–12.Google Scholar
  • Emmadi N, Gauravaram P, Narumanchi H, Syed H (2015) Updates on sorting of fully homomorphic encrypted data. 2015 Internat. Conf. Cloud Comput. Res. Innovation (ICCCRI) (IEEE, Piscataway, NJ), 19–24.Google Scholar
  • Eshghi A, Gopal RD, Hidaji H, Patterson RA (2023) Now you see it, now you don’t: Obfuscation of online third-party information sharing. INFORMS J. Comput. 35(2):286–303.LinkGoogle Scholar
  • Fallah A, Makhdoumi A, Malekian A, Ozdaglar A (2024) Optimal and differentially private data acquisition: Central and local mechanisms. Oper. Res. 72(3):1105–1123.LinkGoogle Scholar
  • Fleischer LK, Lyu YH (2012) Approximately optimal auctions for selling privacy when costs are correlated with data. Proc. 13th ACM Conf. Electronic Commerce (Association for Computing Machinery, New York), 568–585.Google Scholar
  • Forbes (2018) How does GDPR impact advertising and e-commerce? Accessed January 28, 2023, https://www.forbes.com/sites/forbesagencycouncil/2018/05/08/how-does-gdpr-impact-advertising-and-e-commerce/?sh=19c7ccaf3277.Google Scholar
  • Forbes (2019) 47 percent of consumers are blocking ads. Accessed August 4, 2021, https://www.forbes.com/sites/tjmccue/2019/03/19/47-percent-of-consumers-are-blocking-ads/?sh=f1939252037e.Google Scholar
  • Garfinkel R, Gopal RD, Nunez M, Rice DO (2006) Secure electronic markets for private information. IEEE Trans. Systems Man Cybernetics Part A Systems Humans 36(3):461–471.CrossrefGoogle Scholar
  • Gentry C (2010) Computing arbitrary functions of encrypted data. Comm. ACM 53(3):97–105.CrossrefGoogle Scholar
  • Ghosh A, Roth A (2015) Selling privacy at auction. Games Econom. Behav. 91(C):334–346.CrossrefGoogle Scholar
  • Ghosh A, Ligett K, Roth A, Schoenebeck G (2014) Buying private data without verification. Proc. Fifteenth ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 931–948.Google Scholar
  • Google (2024) Google opinion rewards help. Accessed October 10, 2024, https://play.google.com/store/apps/details?id=com.google.android.apps.paidtasks.Google Scholar
  • Gopal RD, Hidaji H, Patterson RA, Rolland E, Zhdanov D (2018) How much to share with third parties? User privacy concerns and website dilemmas. MIS Quart. 42(1):143–164.CrossrefGoogle Scholar
  • Groves T (1973) Incentives in teams. Econometrica 41(4):617–631.CrossrefGoogle Scholar
  • Holt CA, Laury SK (2002) Risk aversion and incentive effects. Amer. Econom. Rev. 92(5):1644–1655.CrossrefGoogle Scholar
  • Hong S, Kim S, Choi J, Lee Y, Cheon JH (2021) Efficient sorting of homomorphic encrypted data with k-way sorting network. IEEE Trans. Inform. Forensics Security 16:4389–4404.CrossrefGoogle Scholar
  • Hörner J, Skrzypacz A (2016) Selling information. J. Political Econom. 124(6):1515–1562.CrossrefGoogle Scholar
  • Hwang T (2020) Subprime Attention Crisis: Advertising and the Time Bomb at the Heart of the Internet (Farrar, Straus and Giroux, New York).Google Scholar
  • Ichihashi S (2020) Online privacy and information disclosure by consumers. Amer. Econom. Rev. 110(2):569–595.CrossrefGoogle Scholar
  • Ichihashi S (2021a) Competing data intermediaries. RAND J. Econom. 52(3):515–537.CrossrefGoogle Scholar
  • Ichihashi S (2021b) The economics of data externalities. J. Econom. Theory 196:105316.CrossrefGoogle Scholar
  • Johnson J (2021) Number of internet users worldwide from 2005 to 2021. Accessed March 6, 2022, https://www.statista.com/statistics/273018/number-of-internet-users-worldwide/.Google Scholar
  • Li C, Li DY, Miklau G, Suciu D (2014) A theory of pricing private data. ACM Trans. Database Systems 39(4):34.CrossrefGoogle Scholar
  • Liao G, Su Y, Ziani J, Wierman A, Huang J (2022) The privacy paradox and optimal bias-variance trade-offs in data acquisition. ACM Sigmetrics Performance Evaluation Rev. 49(2):6–8.CrossrefGoogle Scholar
  • Liu Y, Chen Y (2016) Learning to incentivize: Eliciting effort via output agreement. Proc. Twenty-Fifth Internat. Joint Conf. Artificial Intelligence (AAAI Press, Palo Alto, CA), 3782–3788.Google Scholar
  • Maximize Market Research (2025) Data broker market: Global industry analysis and forecast (2025–2032). Accessed March 12, 2025, https://www.maximizemarketresearch.com/market-report/global-data-broker-market/55670.Google Scholar
  • Mehta S, Dawande M, Janakiraman G, Mookerjee V (2021) How to sell a data set? Pricing policies for data monetization. Inform. Systems Res. 32(4):1281–1297.LinkGoogle Scholar
  • Meir R, Procaccia AD, Rosenschein JS (2012) Algorithms for strategyproof classification. Artificial Intelligence 186(C):123–156.CrossrefGoogle Scholar
  • Mudd G (2021) Privacy-enhancing technologies and building for the future. Accessed March 20, 2022, https://www.facebook.com/business/news/building-for-the-future.Google Scholar
  • Neumann N (2019) How audience targeting and AI campaigns undermine brand growth. Presentation, Melbourne Business School, Melbourne, Australia.Google Scholar
  • Nissim K, Orlandi C, Smorodinsky R (2012) Privacy-aware mechanism design. Proc. 13th ACM Conf. Electronic Commerce (Association for Computing Machinery, New York), 774–789.Google Scholar
  • Nissim K, Vadhan S, Xiao D (2014) Redrawing the boundaries on purchasing data from privacy-sensitive individuals. Proc. 5th Conf. Innovations Theoret. Comput. Sci. (Association for Computing Machinery, New York), 411–422.Google Scholar
  • Roth A, Schoenebeck G (2012) Conducting truthful surveys, cheaply. Proc. 13th ACM Conf. Electronic Commerce (Association for Computing Machinery, New York), 826–843.Google Scholar
  • Samarati P (2001) Protecting respondents identities in microdata release. IEEE Trans. Knowledge Data Engrg. 13(6):1010–1027.CrossrefGoogle Scholar
  • Schuirmann DJ (1987) A comparison of the two one-sided tests procedure and the power approach for assessing the equivalence of average bioavailability. J. Pharmacokinetics Biopharmaceutics 15(6):657–680.CrossrefGoogle Scholar
  • Security.org (2025) VPN consumer usage, adoption & shopping study: 2020. Accessed March 12, 2025, https://www.security.org/resources/vpn-consumer-report-annual/.Google Scholar
  • Temkin D (2021) Charting a course towards a more privacy-first web. Accessed March 20, 2022, https://blog.google/products/ads-commerce/a-more-privacy-first-web.Google Scholar
  • Tucker C, Neumann N (2020) Buying consumer data? Tread carefully. Harvard Bus. Rev. (May 1), https://hbr.org/2020/05/buying-consumer-data-tread-carefully.Google Scholar
  • Van Dijk M, Gentry C, Halevi S, Vaikuntanathan V (2010) Fully homomorphic encryption over the integers. Adv. Cryptology EUROCRYPT 2010 29th Annual Internat. Conf. Theory Appl. Cryptographic Techniques (Springer Berlin Heidelberg, Berlin, Heidelberg), 24–43.Google Scholar
  • Vickrey W (1961) Counterspeculation, auctions, and competitive sealed tenders. J. Finance 16(1):8–37.CrossrefGoogle Scholar
  • Von See A (2020) Volume of data/information created, captured, copied, and consumed worldwide from 2010 to 2023, with forecasts from 2024 to 2028. Accessed March 6, 2022, https://www.statista.com/statistics/871513/worldwide-data-created/.Google Scholar
  • Xing A, Wang H (2024) Pricing and sample set strategies of data providers under quality information asymmetry. J. Oper. Res. Soc. 75(2):278–296.CrossrefGoogle Scholar
  • Zhang X, Yue WT, Yu Y, Zhang X (2023) How to monetize data: An economic analysis of data monetization strategies under competition. Decision Support Systems 173:114012.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.