An Economic Analysis of Privacy Protection and Statistical Accuracy as Social Choices

Statistical agencies face a dual mandate to publish accurate statistics while protecting respondent privacy. Increasing privacy protection requires decreased accuracy. Recognizing this as a resource allocation problem, we propose an economic solution: operate where the marginal cost of increasing privacy equals the marginal benefit. Our model of production, from computer science, assumes data are published using an efficient differentially private algorithm. Optimal choice weighs the demand for accurate statistics against the demand for privacy. Examples from U.S. statistical programs show how our framework can guide decision-making. Further progress requires a better understanding of willingness-to-pay for privacy and statistical accuracy

Revisiting the Economics of Privacy: Population Statistics and Confidentiality Protection as Public Goods

This paper has been replaced with http://digitalcommons.ilr.cornell.edu/ldi/37. We consider the problem of the public release of statistical information about a population–explicitly accounting for the public-good properties of both data accuracy and privacy loss. We first consider the implications of adding the public-good component to recently published models of private data publication under differential privacy guarantees using a Vickery-Clark-Groves mechanism and a Lindahl mechanism. We show that data quality will be inefficiently under-supplied. Next, we develop a standard social planner’s problem using the technology set implied by (ε, δ)-differential privacy with (α, β)-accuracy for the Private Multiplicative Weights query release mechanism to study the properties of optimal provision of data accuracy and privacy loss when both are public goods. Using the production possibilities frontier implied by this technology, explicitly parameterized interdependent preferences, and the social welfare function, we display properties of the solution to the social planner’s problem. Our results directly quantify the optimal choice of data accuracy and privacy loss as functions of the technology and preference parameters. Some of these properties can be quantified using population statistics on marginal preferences and correlations between income, data accuracy preferences, and privacy loss preferences that are available from survey data. Our results show that government data custodians should publish more accurate statistics with weaker privacy guarantees than would occur with purely private data publishing. Our statistical results using the General Social Survey and the Cornell National Social Survey indicate that the welfare losses from under-providing data accuracy while over-providing privacy protection can be substantial

Privacy via the Johnson-Lindenstrauss Transform

Suppose that party A collects private information about its users, where each user's data is represented as a bit vector. Suppose that party B has a proprietary data mining algorithm that requires estimating the distance between users, such as clustering or nearest neighbors. We ask if it is possible for party A to publish some information about each user so that B can estimate the distance between users without being able to infer any private bit of a user. Our method involves projecting each user's representation into a random, lower-dimensional space via a sparse Johnson-Lindenstrauss transform and then adding Gaussian noise to each entry of the lower-dimensional representation. We show that the method preserves differential privacy---where the more privacy is desired, the larger the variance of the Gaussian noise. Further, we show how to approximate the true distances between users via only the lower-dimensional, perturbed data. Finally, we consider other perturbation methods such as randomized response and draw comparisons to sketch-based methods. While the goal of releasing user-specific data to third parties is more broad than preserving distances, this work shows that distance computations with privacy is an achievable goal.Comment: 24 page

VGAN-Based Image Representation Learning for Privacy-Preserving Facial Expression Recognition

Reliable facial expression recognition plays a critical role in human-machine interactions. However, most of the facial expression analysis methodologies proposed to date pay little or no attention to the protection of a user's privacy. In this paper, we propose a Privacy-Preserving Representation-Learning Variational Generative Adversarial Network (PPRL-VGAN) to learn an image representation that is explicitly disentangled from the identity information. At the same time, this representation is discriminative from the standpoint of facial expression recognition and generative as it allows expression-equivalent face image synthesis. We evaluate the proposed model on two public datasets under various threat scenarios. Quantitative and qualitative results demonstrate that our approach strikes a balance between the preservation of privacy and data utility. We further demonstrate that our model can be effectively applied to other tasks such as expression morphing and image completion