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

Hyojin Park, Hyeontaek Oh () and Jun Kyun Choi
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Hyojin Park: Department of Information and Communications Engineering, Korea Advanced Institute of Science and Technology (KAIST), 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

Data, 2023, vol. 9, issue 1, 1-21

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.

Keywords: consent; personal data; data trading; data consumer; profit maximization (search for similar items in EconPapers)
JEL-codes: C8 C80 C81 C82 C83 (search for similar items in EconPapers)
Date: 2023
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