Related papers: Bayesian Regression Markets

Bayesian Regression Markets

URL: http://arxiv.org/abs/2310.14992v3
Date: Mon, 1 Jul 2024 12:36:03 GMT
Title: Bayesian Regression Markets
Authors: Thomas Falconer, Jalal Kazempour, Pierre Pinson,
Abstract summary: We develop a regression market to provide a monetary incentive for data sharing. We show that similar proposals in literature expose the market agents to sizeable financial risks.
Score: 0.16385815610837165
License: http://creativecommons.org/licenses/by-sa/4.0/
Abstract: Although machine learning tasks are highly sensitive to the quality of input data, relevant datasets can often be challenging for firms to acquire, especially when held privately by a variety of owners. For instance, if these owners are competitors in a downstream market, they may be reluctant to share information. Focusing on supervised learning for regression tasks, we develop a regression market to provide a monetary incentive for data sharing. Our mechanism adopts a Bayesian framework, allowing us to consider a more general class of regression tasks. We present a thorough exploration of the market properties, and show that similar proposals in literature expose the market agents to sizeable financial risks, which can be mitigated in our setup.

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