Establishing the price of privacy in federated data trading

DOI10.1007/978-3-030-91631-2_13zbMATH Open1498.91286arXiv2111.15415OpenAlexW3216519227MaRDI QIDQ2154016FDOQ2154016

Catuscia Palamidessi, Kangsoo Jung, Sayan Biswas

Publication date: 13 July 2022

Abstract: Personal data is becoming one of the most essential resources in today's information-based society. Accordingly, there is a growing interest in data markets, which operate data trading services between data providers and data consumers. One issue the data markets have to address is that of the potential threats to privacy. Usually some kind of protection must be provided, which generally comes to the detriment of utility. A correct pricing mechanism for private data should therefore depend on the level of privacy. In this paper, we propose a model of data federation in which data providers, who are, generally, less influential on the market than data consumers, form a coalition for trading their data, simultaneously shielding against privacy threats by means of differential privacy. Additionally, we propose a technique to price private data, and an revenue-distribution mechanism to distribute the revenue fairly in such federation data trading environments. Our model also motivates the data providers to cooperate with their respective federations, facilitating a fair and swift private data trading process. We validate our result through various experiments, showing that the proposed methods provide benefits to both data providers and consumers.

Full work available at URL: https://arxiv.org/abs/2111.15415

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zbMATH Keywords

game theorydifferential privacydata tradingfederated data marketrevenue splitting mechanism

Mathematics Subject Classification ID

Applications of game theory (91A80) Economic models of real-world systems (e.g., electricity markets, etc.) (91B74) Microeconomic theory (price theory and economic markets) (91B24) Privacy of data (68P27)

Cites Work

• The Algorithmic Foundations of Differential Privacy
• Selling privacy at auction
• A Theory of Pricing Private Data

Cited In (1)

• An incentive mechanism for trading personal data in data markets

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