Using Game Theory to Analyze Strategic Choices of Service Providers and Service Requesters

With the rapid development and popularization of Web services , online privacy has become a rising concern. In order to prevent service providers from abusing private information of service requesters , service providers are required to publish their privacy policies. If a service provider’s privacy policy is not consistent with a service requester’s privacy preference, the provider and the requester can negotiate. Whether the negotiation is successful or not depends on the strategic choices of the provider and the requester . This paper analyzes strategic choices of service providers and service requesters in negotiations by game theory. We propose a game theoretic model for negotiations between providers and requesters, discuss ing providers’ and requesters’ strategic choices in one-time negotiation and repeated negotiation. In addition, a case study is given to demonstrate how to use our game theoretic model to analyze the strategic choices of providers and requesters in negotiations.

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