Binary mechanisms under privacy-preserving noise

Farzad Pourbabaee and Federico Echenique

Journal of Economic Theory, 2025, vol. 224, issue C

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.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:224:y:2025:i:c:s0022053125000110

DOI: 10.1016/j.jet.2025.105965

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