valuating privacy

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© 2003 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Valuating Privacy Eytan Adar (with Bernardo Huberman and Leslie Fine) WEIS’05, June 3, 2005

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Valuating Privacy. Eytan Adar (with Bernardo Huberman and Leslie Fine) WEIS’05, June 3, 2005. How this started…. Well duh… SHOCK Social Harvesting of Community Knowledge Locally built profile, used for targeting messages Users demanded more control Add and remove profile components - PowerPoint PPT Presentation

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Page 1: Valuating Privacy

© 2003 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Valuating PrivacyEytan Adar(with Bernardo Huberman and Leslie Fine)

WEIS’05, June 3, 2005

Page 2: Valuating Privacy

page 2April 22, 2023

How this started…

• Well duh…• SHOCK

– Social Harvesting of Community Knowledge– Locally built profile, used for targeting messages– Users demanded more control

• Add and remove profile components• But, they never touched the feature

• What people say versus what they do

Page 3: Valuating Privacy

page 3April 22, 2023

Before I go any further…

• For those of you who haven’t read the paper yet:– How much would I have to pay you for your

weight?– Your age?

Page 4: Valuating Privacy

page 4April 22, 2023

The Goals: What people say and do

• Track what people say, tie it to what they really do

• Who cares about privacy?• How much do they care?

– Can we really figure out how much information is worth?

• Why do they care?– Can we figure out why people price information in

a certain way?

Page 5: Valuating Privacy

page 5April 22, 2023

Related Work

• Survey/modeling based techniques– Jourard self-disclosure test (Jourard, Cozby, Dindia) – Petronio, 2000– Acquisti and Grossklags (various)– Hann et. al. 2003 (Internet survey)– Jupiter, 2002: 70% consider privacy important– Wolfgang, et. al. “Exploration of Attitudes via Physical

Interpersonal Distance Towards the Obese, Drug Users, Homosexuals, Police, and Other Marginal Figures.” (1971)

– Many more (see paper)• But, surveys don’t tell you what people do

• Just what they think they’ll do• Usually just have a reward and no cost

• Here’s $n for doing the survey

Page 6: Valuating Privacy

page 6April 22, 2023

Related Work

• Data based studies– Give me your data I’ll give you a cookie– Hard to find good data– Not verified/verifiable– Too many confounders – confuse the why

• Self selecting• Did they have something happen to them before?• Did something happen to their friends?• Did they see something on TV?

Page 7: Valuating Privacy

page 7April 22, 2023

Our Approach

• Remove as many confounders as possible• Introduce reward and cost

– Privacy calculus • Houston et al. 1987, Altman et al. 1973, etc.• Reveal? reward – cost > 0

– Pay for information– Force revelation of that information

• Adapt approach from behavioral economics/psychology to find where reward really = cost for individuals

Page 8: Valuating Privacy

page 8April 22, 2023

Our Approach

• Want to study the “why”– Hypothesis: Further people are from mean, the

more they will demand for private information• Use real valued information with notion of relativity

– Not SSN, CC#, etc. these are binary (more or less)– Instead: Weight, Age, GPA, Salary, etc.

– Original title: Privacy and Deviance

Page 9: Valuating Privacy

page 9April 22, 2023

Deviation Hypothesis

Continuous private information

Mean

Page 10: Valuating Privacy

page 10April 22, 2023

Deviation Hypothesis

Continuous private information

Price

Mean

Page 11: Valuating Privacy

page 11April 22, 2023

Our Approach

• The Why:– Hypothesis: Further people are from mean, the

more they will demand for private information• Use real valued information with notion of relativity

– Not SSN, CC#, etc. these are binary (more or less)– Instead: Weight, Age, GPA, Salary, etc.

– Original title: Privacy and Deviance• Not quite right

Page 12: Valuating Privacy

page 12April 22, 2023

The Experiment

• Groups of 10 - 15– $25 for showing up

• Put them in the same room (around a table)• Perform

– Reverse, – second price,– sealed bid auction

…. $5 $3 $2 $1 $.01Winner

Paid

Page 13: Valuating Privacy

page 13April 22, 2023

The Experiment

• Groups of 10 - 15– $25 for showing up

• Put them in the same room (around a table)• Perform

– Reverse, – second price,– sealed bid auction

• Data: Weight, Age, GPA • Winner stands up and reveals information and

receives payment (range $0-$100, infinity)– Information is validated (scale, driver license, login)

• Survey

Page 14: Valuating Privacy

page 14April 22, 2023

The Experiment

ID: 8

2828

28 ID: 8282828Weight: Height:Price: Gender:

ID: 8

2828

28 ID: 8282828Age: Gender:Price:

Only have 1 winner per session, but 10+ data points

Page 15: Valuating Privacy

page 15April 22, 2023

Survey Questions

• Also coded with ID• Sanity check:

– If you are reluctant to reveal information in this study, you should:• A) List a very low price• B) List a very high price• C) Leave the price blank

• General privacy attitude (how important is privacy to you?)

• Rank different kinds of information (financial, medical, etc.) by importance.

Page 16: Valuating Privacy

page 16April 22, 2023

Survey Questions

• Weight– Do you feel very underweight, slightly

underweight, average, slightly overweight, overweight given others in the room

– What do you think the average weight is? (your gender)

– Do you think the average (for your gender) is very underweight, slightly underweight, average, slightly overweight, overweight given others in the room

• Same for age• Familiarity with others in the room

– How many do you know well, recognize, etc.

Page 17: Valuating Privacy

page 17April 22, 2023

Survey Questions (Simulated Exp)

TOPIC Very low Low Medium High Very high

Demand price to reveal in

this room

Credit Rating

Savings

Salary

Spouse’s Salary

Page 18: Valuating Privacy

page 18April 22, 2023

The Subjects

• 127 subjects• 59% male• 10 sessions• Recruited from HP and from an area

experimental economics mailing list (mostly Stanford students)

• Allowed to leave at any point• Signed a waiver

• Sessions were mixed, male only, female only, male proctor, female proctor

Page 19: Valuating Privacy

page 19April 22, 2023

The Good Stuff…

• First of all (mea culpa)– GPA was too hard

• Hard to prove• Stanford students

– Pretty smart anyway– Grade inflation?– Didn’t really care

• Weight (actually BMI=function(weight,height))– Best example– Only 7 individuals demanded “infinity”

• 6 were women

Page 20: Valuating Privacy

page 20April 22, 2023

Results: Log Price versus BMI

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

20th 40th 60th 80th 100thBMI Percentile

Log

of P

rice

Bid

p-value = 0.018

Page 21: Valuating Privacy

page 21April 22, 2023

The Good Stuff…

• Encouraging for deviance argument• But…

– Recall perception question• Do you feel very underweight, slightly underweight,

average, slightly overweight, overweight given others in the room?

Page 22: Valuating Privacy

page 22April 22, 2023

Results: Perceived Weight versus Price

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Very Underweight Somewhat Underweight Average Somewhat Overweight

Log

of P

rice

Bid

p-value = 0.0038

• People who are very underweight don’t consider themselves to be that

Page 23: Valuating Privacy

page 23April 22, 2023

Deviance

• So deviation from “mean” is not quite right• Something underlying

– Desirable versus undesirable– Self-perception

• Consistent with sociological work– Goffman (self-representation, stigmas)– Simmel– See paper for more.

Page 24: Valuating Privacy

page 24April 22, 2023

The Good Stuff… Age

P=0.17

20th 40th 60th 80th 100th

3

0

Log Price, age groups binning, 88 participants

• Not so encouraging... •Maybe students don’t care about privacy?

•$57 vs $74• But… lowest bucket ($3.62) versus highest ($18.05), p=.0297• Might mean that middle age groups don’t care…

Page 25: Valuating Privacy

page 25April 22, 2023

What about gender?

• Suggestive, but weak stats– Take these with a grain of salt

• Mixed sessions versus single sex– Men have slightly higher prices for single sex

sessions• p = 0.24

– Women have slightly higher prices in mixed sessions• p = 0.39

– In general, we can’t tell the difference • mixed versus all women versus all men• p = 1

Page 26: Valuating Privacy

page 26April 22, 2023

Gender Differences – Men Log Price vs BMI

20% 40% 60% 80% 100%

3

1.5

0p-value=.01

Page 27: Valuating Privacy

page 27April 22, 2023

Gender Differences – Women Log Price vs BMI

3

1.5

020% 40% 60% 80% 100%

• Top 50% versus bottom, clearer– p-value = .16

p-value=.42

Page 28: Valuating Privacy

page 28April 22, 2023

Gender Differences – Men log price

3

1.5

0Very Under

Somewhat UnderAverage Somewhat Over

Page 29: Valuating Privacy

page 29April 22, 2023

Gender differences – Women, log price

3

1.5

0Somewhat UnderAverage Somewhat Over

•p-value = .2•Just somewhat over, and somewhat under, p-value = .099•Lesson: women demand more across most categories

•need more than $100?

Page 30: Valuating Privacy

page 30April 22, 2023

Friends versus strangers in the room (BMI)

• Coded up friendship with scores– Know well = 4, – Acquainted = 3, etc.

• More people you know, the more you charge– Not so strong, p = .34

• Looking at top 50% and bottom much stronger– 36% versus 23%– p = .05

• “Phenomena of the stranger” (Simmel)

3

1.5

0

20% 40% 60% 80% 100%

Page 31: Valuating Privacy

page 31April 22, 2023

Salary, credit rating, savings

• Much more sensitive• Hard to say something concrete

– If we did it again: • should have expressed no framing limits

Salary Spouse Salary

Credit Rating

Savings

Participants

77 52 78 77

Want > $100

48% 36% 24% 38%

Page 32: Valuating Privacy

page 32April 22, 2023

Price versus Privacy Attitude

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Critical Very Important Somewhat Important Not Important

Log

of P

rice

Bid

• Not too bad, p-value = .054• Should be taken with a grain of salt

– Question asked after auction– Subjects may have been matching answer to their behavior (priming)

Page 33: Valuating Privacy

page 33April 22, 2023

Observations (if you want to try this)

• Auction is always cheap… – max payment was <$1 – Usually a few pennies

• Normalization is important– Weight versus BMI– Year on job, occupation, etc.– Critical to know who subjects are comparing themselves

against• Lots of ways to cut up the data

– Worry about data dilution– Fix more variables

• Cultural issues?– Would love to see this study in some other country

Page 34: Valuating Privacy

page 34April 22, 2023

Summary and Afterwards…

• Well duh…– We didn’t set out to prove the obvious… – Demonstrate a technique that yields actual numbers

and removes confounders– Experiments with real-valued data demonstrate

something about certain kinds of private information• Those influenced by group norms/attitudes

• Possibly important in the design of survey based studies– Results indicate correct amount to offer

• Offering less means you get a biased sample• Raises new privacy issues?

– Maybe possible to reverse– Given that you want $x, probability is you weight y

Page 35: Valuating Privacy

page 35April 22, 2023

Summary and Afterwards…

• If you write a paper on weight you will end up on pro-ana (anorexia) blogs

• If you write a paper like “Privacy and Deviance” your work will appear on fetish websites

Page 36: Valuating Privacy

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