In this paper, we study Local Information Privacy (LIP). As a context-aware privacy notion, LIP relaxes the de facto standard privacy notion of local differential privacy (LDP) by incorporating prior knowledge and therefore achieving better utility. We study the relationships between LIP and some of the representative privacy notions including LDP, mutual information and maximal leakage. We show that LIP provides strong instance-wise privacy protection compared to other context-aware privacy notions. Moreover, we present some useful properties of LIP, including post-processing, linkage, composability, transferability and robustness to imperfect prior knowledge. Then we study a general utility-privacy tradeoff framework, under which we derive LIP based privacy-preserving mechanisms for both discrete and continuous-valued data. Three types of perturbation mechanisms are studied in this paper: 1) randomized response (RR), 2) random sampling (RS) and 3) additive noise (AN) (e.g., Gaussian mechanism). Our privacy mechanisms incorporate the prior knowledge into the perturbation parameters so as to enhance utility. Finally, we present a comprehensive set of experiments on real datasets to illustrate the advantage of context-awareness and compare the utility-privacy tradeoffs provided by different mechanisms.

In this paper, we study local information privacy (LIP), and design LIP based mechanisms for statistical aggregation while protecting users' privacy without relying on a trusted third party. The concept of context-awareness is incorporated in LIP, which can be viewed as exploiting of data prior (both in privatizing and post-processing) to enhance data utility. We present an optimization framework to minimize the mean square error of data aggregation while protecting the privacy of each user's input data or a correlated latent variable by satisfying LIP constraints. Then, we study optimal mechanisms under different scenarios considering the prior uncertainty and correlation with a latent variable. Three types of mechanisms are studied in this paper, including randomized response (RR), unary encoding (UE), and local hashing (LH), and we derive closed-form solutions for the optimal perturbation parameters that are prior-dependent. We compare LIP based mechanisms with those based on LDP, and theoretically show that the former achieves enhanced utility. We then study two applications: (weighted) summation and histogram estimation, and show how proposed mechanisms can be applied to each application. Finally, we validate our analysis by simulations using both synthetic and real-world data.