Selling Data to a Competitor (Extended Abstract)

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Tác giả: Ronen Gradwohl, Moshe Tennenholtz

Ngôn ngữ: eng

Ký hiệu phân loại: 658.85 Personal selling

Thông tin xuất bản: 2023

Mô tả vật lý:

Bộ sưu tập: Metadata

ID: 197658

Comment: In Proceedings TARK 2023, arXiv:2307.04005. A full version of this paper, containing all proofs, appears at arXiv:2302.00285We study the costs and benefits of selling data to a competitor. Although selling all consumers' data may decrease total firm profits, there exist other selling mechanisms -- in which only some consumers' data is sold -- that render both firms better off. We identify the profit-maximizing mechanism, and show that the benefit to firms comes at a cost to consumers. We then construct Pareto-improving mechanisms, in which each consumers' welfare, as well as both firms' profits, increase. Finally, we show that consumer opt-in can serve as an instrument to induce firms to choose a Pareto-improving mechanism over a profit-maximizing one.
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