Incentive Schemes for Privacy-Sensitive Consumers
نویسندگان
چکیده
Businesses (retailers) often wish to offer personalized advertisements (coupons) to individuals (consumers), but run the risk of strong reactions from consumers who want a customized shopping experience but feel their privacy has been violated. Existing models for privacy such as differential privacy or information theory try to quantify privacy risk but do not capture the subjective experience and heterogeneous expression of privacy-sensitivity. We propose a Markov decision process (MDP) model to capture: (i) different consumer privacy sensitivities via a time-varying state; (ii) different coupon types (action set) for the retailer; and (iii) the action-and-state-dependent cost for perceived privacy violations. For the simple case with two states (“Normal” and “Alerted”), two coupons (targeted and untargeted) model, and consumer behavior statistics known to the retailer, we show that a stationary thresholdbased policy is the optimal coupon-offering strategy for a retailer that wishes to minimize its expected discounted cost. The threshold is a function of all model parameters; the retailer offers a targeted coupon if their belief that the consumer is in the “Alerted” state is below the threshold. We extend this simple model and results to consumers with multiple privacy-sensitivity states as well as coupon-dependent state transition probabilities.
منابع مشابه
Designing Incentive Schemes For Privacy-Sensitive Users
Businesses (retailers) often wish to offer personalized advertisements (coupons) to individuals (consumers), but run the risk of strong reactions from consumers who want a customized shopping experience but feel their privacy has been violated. Existing models for privacy such as differential privacy or information theory try to quantify privacy risk but do not capture the subjective experience...
متن کاملBrowse searchable encryption schemes: Classification, methods and recent developments
With the advent of cloud computing, data owners tend to submit their data to cloud servers and allow users to access data when needed. However, outsourcing sensitive data will lead to privacy issues. Encrypting data before outsourcing solves privacy issues, but in this case, we will lose the ability to search the data. Searchable encryption (SE) schemes have been proposed to achieve this featur...
متن کاملEnhancing privacy of recent authentication schemes for low-cost RFID systems
Nowadays Radio Frequency Identification (RFID) systems have appeared in lots of identification and authentication applications. In some sensitive applications, providing secure and confidential communication is very important for end-users. To this aim, different RFID authentication protocols have been proposed, which have tried to provide security and privacy of RFID users. In this paper, we a...
متن کاملPrivacy Aware Schemes in Mobile Adhoc Networks
A Mobile Ad hoc Network (MANET) is a system of wireless mobile nodes that dynamically self-organize in arbitrary and temporary network topologies. Both selfish and privacy issues have been identified as two crucial human factors for the wide acceptance of MANETs. Security has become a primary concern in order to provide protected communication between mobile nodes. In this work we present a rev...
متن کاملProactive Data Sharing to Enhance Privacy in Ubicomp Environments
Discussions about privacy often assume an antagonistic relationship between those who collect data and those about whom data is collected. Those who collect data (the data consumers) want the greatest possible access to data, whereas those about whom data is collected (the data producers) want privacy to the greatest possible extent. Much work on privacy has consequently been devoted to designi...
متن کامل