LGGTAug 10, 2025

Strategic Incentivization for Locally Differentially Private Federated Learning

arXiv:2508.07138v1h-index: 34
Originality Incremental advance
AI Analysis

This addresses privacy concerns in federated learning for clients, but it is incremental as it builds on existing LDP and game theory approaches.

The paper tackles the privacy-accuracy trade-off in Federated Learning with Local Differential Privacy by modeling it as a game where the server incentivizes clients to add less noise for higher accuracy, and experiments show the impact of parameters on this mechanism.

In Federated Learning (FL), multiple clients jointly train a machine learning model by sharing gradient information, instead of raw data, with a server over multiple rounds. To address the possibility of information leakage in spite of sharing only the gradients, Local Differential Privacy (LDP) is often used. In LDP, clients add a selective amount of noise to the gradients before sending the same to the server. Although such noise addition protects the privacy of clients, it leads to a degradation in global model accuracy. In this paper, we model this privacy-accuracy trade-off as a game, where the sever incentivizes the clients to add a lower degree of noise for achieving higher accuracy, while the clients attempt to preserve their privacy at the cost of a potential loss in accuracy. A token based incentivization mechanism is introduced in which the quantum of tokens credited to a client in an FL round is a function of the degree of perturbation of its gradients. The client can later access a newly updated global model only after acquiring enough tokens, which are to be deducted from its balance. We identify the players, their actions and payoff, and perform a strategic analysis of the game. Extensive experiments were carried out to study the impact of different parameters.

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