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Optimal design of sequential real-time communication of a Markov source over a noisy channel is investigated. In such a system, the delay between the source output and its reconstruction at the receiver should equal a fixed prespecified amount. An optimal communication strategy must minimize the total expected symbol-by-symbol distortion between the source output and its reconstruction. Design techniques or performance bounds for such real-time communication systems are unknown. In this paper a systematic methodology, based on the concepts of information structures and information states, to search for an optimal real-time communication strategy is presented.
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