Incentive-compatible Mechanism Design for Privacy

Completed Project

Project Management

Nicola Jentzsch

Project Period

November 1, 2012 - February 29, 2016

In Cooperation With

Prof. Francesco Feri, Royal Holloway, University of London
Dr. Caterina Giannetti, University of Bologna

Google Research Award



This project entails two parts. The first part is entitled “Auctioning Identity Data: Experimental Evidence” and presents an experimental reverse Vickrey auction of  personal type information that allows social comparisons. In this auction, it is analyzed how information sensitivity influences price-setting behavior of bidders. The result shows that negative sensitivity increases ask prices for personal identity and type data.

The second part is cooperative work with Prof. Feri and Dr. Giannetti (Disclosure of Personal Information under Risk of Privacy Shocks). In this paper, we analyze the effect of data breach notifications on consumer behavior with respect to disclosure of personal data. We present the problem as a dynamic lottery with personal data under the risk of privacy shocks and experimentally study how the privacy breach notification changes an individual’s behavior regarding data disclosure.

DIW Team