We study privacy-preserving algorithms that redact information from a correlated dataset. The goal is to reduce the information leakage about sensitive parts. We analytically characterize the optimal tradeoff between privacy (leakage through correlation) and utility (number of redactions) for local mechanisms and binary Markovian correlations. Our result shows how to decompose the mechanism design problem into a sequence of local mechanism design problems and reveals their sequential relation. The optimal mechanism is the solution to a Finite-Horizon Deterministic Markov Decision Process.

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