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Effects of Privacy-Inducing Noise on Welfare and Influence of Referendum Systems

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  • Suat Evren
  • Praneeth Vepakomma

Abstract

Social choice functions help aggregate individual preferences while differentially private mechanisms provide formal privacy guarantees to release answers of queries operating on sensitive data. However, preserving differential privacy requires introducing noise to the system, and therefore may lead to undesired byproducts. Does an increase in the level of differential privacy for releasing the outputs of social choice functions increase or decrease the level of influence and welfare, and at what rate? In this paper, we mainly address this question in more precise terms in a referendum setting with two candidates when the celebrated randomized response mechanism is used. We show that there is an inversely-proportional relation between welfare and privacy, and also influence and privacy.

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  • Suat Evren & Praneeth Vepakomma, 2022. "Effects of Privacy-Inducing Noise on Welfare and Influence of Referendum Systems," Papers 2201.10115, arXiv.org, revised Sep 2023.
    • Handle: RePEc:arx:papers:2201.10115
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    References listed on IDEAS

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    1. Kenneth J. Arrow, 1950. "A Difficulty in the Concept of Social Welfare," Journal of Political Economy, University of Chicago Press, vol. 58(4), pages 328-328.
    2. Claude Hillinger, 2005. "The Case for Utilitarian Voting," Homo Oeconomicus, Institute of SocioEconomics, vol. 23, pages 295-321.
    3. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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