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Contextually Private Mechanisms

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  • Andreas Haupt
  • Zoe Hitzig

Abstract

We introduce a framework for comparing the privacy of different mechanisms. A mechanism designer employs a dynamic protocol to elicit agents' private information. Protocols produce a set of contextual privacy violations -- information learned about agents that may be superfluous given the context. A protocol is maximally contextually private if there is no protocol that produces a subset of the violations it produces, while still implementing the choice rule. We show that selecting a maximally contextually private protocol involves a deliberate decision about whose privacy is most important to protect, and these protocols delay questions to those they aim to protect. Taking the second-price auction rule as an instructive example, we derive two novel designs that are maximally contextually private: the ascending-join and overdescending-join protocols.

Suggested Citation

  • Andreas Haupt & Zoe Hitzig, 2021. "Contextually Private Mechanisms," Papers 2112.10812, arXiv.org, revised Apr 2024.
    • Handle: RePEc:arx:papers:2112.10812
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    References listed on IDEAS

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    1. Mohammad Akbarpour & Shengwu Li, 2020. "Credible Auctions: A Trilemma," Econometrica, Econometric Society, vol. 88(2), pages 425-467, March.
    2. Mark A. Satterthwaite & Hugo Sonnenschein, 1981. "Strategy-Proof Allocation Mechanisms at Differentiable Points," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 587-597.
    3. Paul Milgrom & Ilya Segal, 2020. "Clock Auctions and Radio Spectrum Reallocation," Journal of Political Economy, University of Chicago Press, vol. 128(1), pages 1-31.
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    Cited by:

    1. Ran Canetti & Amos Fiat & Yannai A. Gonczarowski, 2023. "Zero-Knowledge Mechanisms," Papers 2302.05590, arXiv.org.

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