The Information Bottleneck method aims to extract a compact representation which preserves the maximum relevant information. The sub-optimality in agglomerative Information Bottleneck (aIB) algorithm restricts the applications of Information Bottleneck method. In this paper, the concept of density-based chains is adopted to evaluate the information loss among the neighbors of an element, rather than the information loss between pairs of elements. The DaIB algorithm is then presented to alleviate the sub-optimality problem in aIB while simultaneously keeping the useful hierarchical clustering tree-structure. The experiment results on the benchmark data sets show that the DaIB algorithm can get more relevant information and higher precision than aIB algorithm, and the paired t-test indicates that these improvements are statistically significant.
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