To Buy or Not to Buy: Computing Value of Spatiotemporal Information

Heba Aly, John Krumm, Gireeja Ranade, Eric Horvitz

Abstract: Location data from mobile devices is a sensitive yet valuable commodity for location-based services and advertising. We investigate the intrinsic value of location data in the context of strong privacy, where location information is only available from end users via purchase. We present an algorithm to compute the expected value of location data from a user, without access to the specific coordinates of the location data point. We use decision-theoretic techniques to provide a principled way for a potential buyer to make purchasing decisions about private user location data. We illustrate our approach in three scenarios: the delivery of targeted ads specific to a user’s home location, the estimation of traffic speed, and location prediction. In all three cases, the methodology leads to quantifiably better purchasing decisions than competing methods.