For the privacy funnel (PF) problem, we propose an efficient iterative agglomerative clustering algorithm based on the minimization of the difference of submodular functions (IAC-MDSF). For a data curator that wants to share the data correlated with the sensitive information , the PF problem is to generate the sanitized data that maintains a specified utility/fidelity threshold on while minimizing the privacy leakage . Our IAC-MDSF algorithm starts with the original alphabet and iteratively merges the elements in the current alphabet that minimizes the Lagrangian function . We prove that the best merge in each iteration of IAC-MDSF can be searched efficiently over all subsets of by the existing MDSF algorithms. We show that the IAC-MDSF algorithm also applies to the information bottleneck (IB), a dual problem to PF. By varying the value of the Lagrangian multiplier , we obtain the experimental results on a heart disease data set in terms of the Pareto frontier: vs. . We show that our IAC-MDSF algorithm outperforms the existing iterative pairwise merge approaches for both PF and IB and is computationally much less complex.

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