{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/privacy-can-arise-endogenously-in-an-economic","title":"Privacy Can Arise Endogenously in an Economic System with Learning Agents","arxiv_id":"2404.10767","date":"2024-04-16","proceeding":null,"authors":["Nivasini Ananthakrishnan","Tiffany Ding","Mariel Werner","Sai Praneeth Karimireddy","Michael I. Jordan"],"abstract":"We study price-discrimination games between buyers and a seller where privacy arises endogenously--that is, utility maximization yields equilibrium strategies where privacy occurs naturally. In this game, buyers with a high valuation for a good have an incentive to keep their valuation private, lest the seller charge them a higher price. This yields an equilibrium where some buyers will send a signal that misrepresents their type with some probability; we refer to this as buyer-induced privacy. When the seller is able to publicly commit to providing a certain privacy level, we find that their equilibrium response is to commit to ignore buyers' signals with some positive probability; we refer to this as seller-induced privacy. We then turn our attention to a repeated interaction setting where the game parameters are unknown and the seller cannot credibly commit to a level of seller-induced privacy. In this setting, players must learn strategies based on information revealed in past rounds. We find that, even without commitment ability, seller-induced privacy arises as a result of reputation building. We characterize the resulting seller-induced privacy and seller's utility under no-regret and no-policy-regret learning algorithms and verify these results through simulations.","url_abs":"https://arxiv.org/abs/2404.10767v1","url_pdf":"https://arxiv.org/pdf/2404.10767v1.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"links_only","authors_date_abstract":"arXiv metadata, CC0 1.0 (https://info.arxiv.org/help/license), from the Kaggle arXiv metadata snapshot of 2026-09-12"},"code_links":[{"paper_slug":"privacy-can-arise-endogenously-in-an-economic","repo_url":"https://github.com/nivasini/privacydynamics","is_official":1,"mentioned_in_paper":1,"mentioned_in_github":0,"framework":"none","reach":null}],"tasks":[],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}