2020/12/15 by Ranjan Pal, Pal, Ranjan, Junhui Li +9
Social Sciences · Decision Sciences · Business, Management and Accounting · #Privacy, Security, and Data Protection #Auction Theory and Applications #Consumer Market Behavior and Pricing
paper · pdf · doi:10.48550/arxiv.2012.08729
This paper argues that data of strategic individuals with heterogeneous privacy valuations in a distributed online social network (e.g., Facebook) will be under-priced, if traded in a monopoly buyer setting, and will lead to diminishing utilitarian welfare. This result, for a certain family of online community data trading problems, is in stark contrast to a popular information economics intuition that increased amounts of end-user data signals in a data market improves its efficiency. Our proposed theory paves the way for a future (counter-intuitive) analysis of data trading oligopoly markets for online social networks (OSNs).