The value of data

Abstract

Data and information are integral to the modern economic system. Advances in technology have allowed companies to both collect and utilize vast amounts of data. At times this data can be very private and collected surreptitiously. Smartphones and other devices that keep us in constant contact with the internet provide companies like Google and Facebook with a wealth of information to sell. Despite all this, there currently does not exist a systematic way to value data. In the absence of such valuations, gross economic inefficiencies are inevitable. In this thesis, we seek to model ways in which data can be bought, sold, and used fairly in an economic environment. We also develop a theory to value data in different settings. Our models and results are applied to a variety of different domains to demonstrate their efficacy. Results from game theory and mathematical programming allow us to provide fair and efficient allocations of data. This research shows that there exists an efficient and fair method with which to determine the value of information and data and to trade it fairly.