Differential Privacy for Stackelberg Games
It addresses privacy concerns in sequential and interdependent markets like gas and electricity, offering a solution for system agents, though it is incremental as it builds on existing differential privacy methods.
This paper tackles the problem of protecting sensitive information in Stackelberg game-based market coordination by introducing a differentially private mechanism that maintains feasibility and fidelity to the original optimization, with experimental results on gas and electricity benchmarks showing close-to-optimal outcomes.
This paper introduces a differentially private (DP) mechanism to protect the information exchanged during the coordination of sequential and interdependent markets. This coordination represents a classic Stackelberg game and relies on the exchange of sensitive information between the system agents. The paper is motivated by the observation that the perturbation introduced by traditional DP mechanisms fundamentally changes the underlying optimization problem and even leads to unsatisfiable instances. To remedy such limitation, the paper introduces the Privacy-Preserving Stackelberg Mechanism (PPSM), a framework that enforces the notions of feasibility and fidelity of the privacy-preserving information to the original problem objective. PPSM complies with the notion of differential privacy and ensures that the outcomes of the privacy-preserving coordination mechanism are close-to-optimality for each agent. Experimental results on several gas and electricity market benchmarks based on a real case study demonstrate the effectiveness of the approach.