To justify its sky-high valuation, Facebook will have to increase its profit per user at rates that seem unlikely, even by the most generous predictions.
Last year, we looked at just how unlikely this is.
The issue that concerns many Facebook users is this. The company is set profit from selling user data but the users whose data is being traded do not get paid at all. That seems unfair.
Today, Bernardo Huberman and Christina Aperjis at HP Labs in Palo Alto, say there is an alternative. Why not pay individuals for their data? TR looked at this idea earlier this week.
Setting up a market for private data won't be easy. Chief among the problems is that buyers will want unbiased samples--selections chosen at random from a certain subgroup of individuals. That's crucial for many kinds of statistical tests.
However, individuals will have different ideas about the value of their data. For example, one person might be willing to accept a few cents for their data while another might want several dollars.