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| Participants in an economic system are reluctant to make their strategy public. This issue is relevant for negotiations, auctions and other mechanism designs. It poses an obstacle in making automated methods for such transactions widespread in many domains, in spite of the apparent advantages of such systems. The goal of the present invention to preserve the privacy of the values of the participants and assure the integrity of the mechanism while maintaining communication and computational efficiency. This is achieved by adding another party - the Issuer - that generates garbled programs for computing the auctions but does not take an active part in the protocol. The garbled programs are executed by an auctioneer or negotiator who receives ``garbled inputs" from the bidders and allow him to determine the outcome of the transaction. This architecture can be used in principle to implement any mechanism design and in practice it is efficient for many mechanisms.present relates field cryptographic protocols general secure function evaluation application holding networked auctions computer |
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