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Pricing Strategies for Different Accuracy Models from the Same Dataset Based on Generalized Hotelling's Law

arXiv 2404.05272 ↗First posted 8 Apr 2024cs.AIcited by 0

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Abstract (arXiv)

We consider a scenario where a seller possesses a dataset D and trains it into models of varying accuracies for sale in the market. Due to the reproducibility of data, the dataset can be reused to train models with different accuracies, and the training cost is independent of the sales volume. These two characteristics lead to fundamental differences between the data trading market and traditional trading markets. The introduction of different models into the market inevitably gives rise to competition. However, due to the varying accuracies of these models, traditional multi-oligopoly games are not applicable. We consider a generalized Hotelling's law, where the accuracy of the models is abstracted as distance. Buyers choose to purchase models based on a trade-off between accuracy and price, while sellers determine their pricing strategies based on the market's demand. We present two pricing strategies: static pricing strategy and dynamic pricing strategy, and we focus on the static pricing strategy. We propose static pricing mechanisms based on various market conditions and provide an example. Finally, we demonstrate that our pricing strategy remains robust in the context of incomplete information games.

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References · 8

  1. 2019Towards Efficient Data Valuation Based on the Shapley Valuecited by 279
  2. 2018A Marketplace for Data: An Algorithmic Solutioncited by 75
  3. 2020A Survey on Data Pricing: from Economics to Data Sciencecited by 39
  4. 2022Fundamentals of Task-Agnostic Data Valuationcited by 19
  5. 2022Data Debugging with Shapley Importance over End-to-End Machine Learning Pipelinescited by 16
  6. 2023Evaluating and Incentivizing Diverse Data Contributions in Collaborative Learningcited by 8
  7. 2023A Survey of Data Pricing for Data Marketplacescited by 6
  8. 2023SWDPM: A Social Welfare-Optimized Data Pricing Mechanismcited by 3

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