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Binary mechanisms under privacy-preserving noise

Author

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  • Pourbabaee, Farzad
  • Echenique, Federico

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.

Suggested Citation

  • Pourbabaee, Farzad & Echenique, Federico, 2025. "Binary mechanisms under privacy-preserving noise," Journal of Economic Theory, Elsevier, vol. 224(C).
    • Handle: RePEc:eee:jetheo:v:224:y:2025:i:c:s0022053125000110
    DOI: 10.1016/j.jet.2025.105965
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    References listed on IDEAS

    as
    1. Daniel McFadden, 2009. "The human side of mechanism design: a tribute to Leo Hurwicz and Jean-Jacques Laffont (Publisher’s Erratum)," Review of Economic Design, Springer;Society for Economic Design, vol. 13(4), pages 377-377, December.
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