Published March 2025 | Published
Journal Article

Binary mechanisms under privacy-preserving noise

  • 1. ROR icon California Institute of Technology
  • 2. ROR icon University of California, Berkeley

Abstract

We study mechanism design for public-good provision under a noisy privacy-preserving transformation of individual agents' reported preferences. The setting is a standard binary model with transfers and quasi-linear utility. Agents report their preferences for the public good, which are randomly "flipped," so that any individual report may be explained away as the outcome of noise. We study the tradeoffs between preserving the public decisions made in the presence of noise (noise sensitivity), pursuing efficiency, and mitigating the effect of noise on revenue.

Copyright and License

© 2025 Elsevier Inc. All rights are reserved, including those for text and data mining, AI training, and similar technologies.

Contributions

Farzad Pourbabaee: Writing – review & editing, Writing – original draft, Methodology, Investigation, Conceptualization. Federico Echenique: Writing – review & editing, Writing – original draft, Methodology, Investigation, Conceptualization.

Conflict of Interest

Regarding the paper “Binary Mechanisms under Privacy-Preserving Noise,” submitted for publication in the Journal of Economic Theory, we declare that we have relevant financial interests to declare.

Data Availability

No data was used for the research described in the article.

Additional details

Created:
January 23, 2025
Modified:
January 23, 2025