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Is privacy compatible with truthfulness?

Published: 09 January 2013 Publication History

Abstract

In the area of privacy-preserving data mining, a differentially private mechanism intuitively encourages people to share their data because they are at little risk of revealing their own information. However, we argue that this interpretation is incomplete because external incentives are necessary for people to participate in databases, and so data release mechanisms should not only be differentially private but also compatible with incentives, otherwise the data collected may be false. We apply the notion of truthfulness from game theory to this problem. In certain settings, it turns out that existing differentially private mechanisms do not encourage participants to report their information truthfully.
On the positive side, we exhibit a transformation that takes truthful mechanisms and transforms them into differentially private mechanisms that remain truthful. Our transformation applies to games where the type space is small and the goal is to optimize an insensitive quantity such as social welfare. Our transformation incurs only a small additive loss in optimality, and it is computationally efficient. Combined with the VCG mechanism, our transformation implies that there exists a differentially private, truthful, and approximately efficient mechanism for any social welfare game with small type space.
We also study a model where an explicit numerical cost is assigned to the information leaked by a mechanism. We show that in this case, even differential privacy may not be strong enough of a notion to motivate people to participate truthfully. We show that mechanisms that release a perturbed histogram of the database may reveal too much information. We also show that, in general, any mechanism that outputs a synopsis that resembles the original database (such as the mechanism of Blum et al. (STOC '08)) may reveal too much information.

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    cover image ACM Conferences
    ITCS '13: Proceedings of the 4th conference on Innovations in Theoretical Computer Science
    January 2013
    594 pages
    ISBN:9781450318594
    DOI:10.1145/2422436
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    Published: 09 January 2013

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    1. differential privacy
    2. mechanism design

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    January 9 - 12, 2013
    California, Berkeley, USA

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    • (2025)Binary Mechanisms under Privacy-Preserving NoiseJournal of Economic Theory10.1016/j.jet.2025.105965(105965)Online publication date: Jan-2025
    • (2023)Differentially private condorcet votingProceedings of the Thirty-Seventh AAAI Conference on Artificial Intelligence and Thirty-Fifth Conference on Innovative Applications of Artificial Intelligence and Thirteenth Symposium on Educational Advances in Artificial Intelligence10.1609/aaai.v37i5.25714(5755-5763)Online publication date: 7-Feb-2023
    • (2023)Optimal Nonlinear Pricing with Data-Sensitive ConsumersAmerican Economic Journal: Microeconomics10.1257/mic.2021019015:2(80-108)Online publication date: 1-May-2023
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    • (2020)Privacy GamesACM Transactions on Economics and Computation10.1145/33815338:2(1-37)Online publication date: 3-May-2020
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