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The digital transmission of signals by transmitters and receivers that are time-invariant finite-state machines were investigated in general form. An average distortion criterion is used. Some general structure theorems are proved and some examples given that show improvement in performance as the memories of the transmitter and receiver are increased. Many conjectures and unsolved problems are mentioned, and areas for further study are indicated.
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Gaarder et al. (1982) studied this question.
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