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A Profit Maximization Model for Data Consumers with Data Providers’ Incentives in Personal Data Trading Market

Author

Listed:
  • Hyojin Park

    (Department of Information and Communications Engineering, Korea Advanced Institute of Science and Technology (KAIST), Daejeon 34141, Republic of Korea
    TOVDATA Inc., Daejeon 34141, Republic of Korea)

  • Hyeontaek Oh

    (Institute for Information Technology Convergence, Korea Advanced Institute of Science and Technology (KAIST), Daejeon 34141, Republic of Korea)

  • Jun Kyun Choi

    (School of Electrical Engineering, Korea Advanced Institute of Science and Technology (KAIST), Daejeon 34141, Republic of Korea)

Abstract

This paper proposes a profit maximization model for a data consumer when it buys personal data from data providers (by obtaining consent) through data brokers and provides their new services to data providers (i.e., service consumers). To observe the behavioral models of data providers, the data consumer, and service consumers, this paper proposes the willingness-to-sell model of personal data of data providers (which is affected by data providers’ behavior related to explicit consent), the service quality model obtained by the collected personal data from the data consumer’s perspective, and the willingness-to-pay model of service consumers regarding provided new services from the data consumer. Particularly, this paper jointly considers the behavior of data providers and service users under a limited budget. With parameters inspired by real-world surveys on data providers, this paper shows various numerical results to check the feasibility of the proposed models.

Suggested Citation

  • Hyojin Park & Hyeontaek Oh & Jun Kyun Choi, 2023. "A Profit Maximization Model for Data Consumers with Data Providers’ Incentives in Personal Data Trading Market," Data, MDPI, vol. 9(1), pages 1-21, December.
    • Handle: RePEc:gam:jdataj:v:9:y:2023:i:1:p:6-:d:1307506
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    References listed on IDEAS

    as
    1. Volker Benndorf & Hans‐Theo Normann, 2018. "The Willingness to Sell Personal Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(4), pages 1260-1278, October.
    2. Alfnes, Frode & Wasenden, Ole Christian, 2022. "Your privacy for a discount? Exploring the willingness to share personal data for personalized offers," Telecommunications Policy, Elsevier, vol. 46(7).
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