A dynamic programming algorithm for constructing optimal prefix-free codes with unequal letter costs

We consider the problem of constructing prefix-free codes of minimum cost when the encoding alphabet contains letters of unequal length. The complexity of this problem has been unclear for thirty years with the only algorithm known for its solution involving a transformation to integer linear programming. We introduce a new dynamic programming solution to the problem. It optimally encodes n words in O(n ^C+2) time, if the costs of the letters are integers between 1 and C. While still leaving open the question of whether the general problem is solvable in polynomial time, our algorithm seems to be the first one that runs in polynomial time for fixed letter costs