Online Pricing with Reserve Price Constraint for Personal Data Markets
The society's insatiable appetites for personal data are driving the emergency of data markets, allowing data consumers to launch customized queries over the datasets collected by a data broker from data owners. In this paper, we study how the data broker can maximize her cumulative revenue by posting reasonable prices for sequential queries. We thus propose a contextual dynamic pricing mechanism with the reserve price constraint, which features the properties of ellipsoid for efficient online optimization, and can support linear and non-linear market value models with uncertainty. In particular, under low uncertainty, our pricing mechanism provides a worst-case regret logarithmic in the number of queries. We further extend to other similar application scenarios, including hospitality service, online advertising, and loan application, and extensively evaluate three pricing instances of noisy linear query, accommodation rental, and impression over MovieLens 20M dataset, Airbnb listings in U.S. major cities, and Avazu mobile ad click dataset, respectively. The analysis and evaluation results reveal that our proposed pricing mechanism incurs low practical regret, online latency, and memory overhead, and also demonstrate that the existence of reserve price can mitigate the cold-start problem in a posted price mechanism, and thus can reduce the cumulative regret.
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