We study the effects of finite-precision representation of source’s probabilities on the efficiency of classic source coding algorithms, such as Shannon, Gilbert-Moore, or arithmetic codes. In particular, we establish the following simple connection between the redundancy and the number of bits necessary for representation of source’s probabilities in computer’s memory ( is assumed to be small): \begin{equation*} W \lesssim \eta \log_2 \frac{m}{R}, \end{equation*} where is the cardinality of the source’s alphabet, and is an implementation-specific constant. In case of binary alphabets () we show that there exist codes for which $\eta = 1/2mm > 2\eta = m/(m+1)$. In general case, however (which includes designs relying on progressive updates of frequency counters), we show that . Usefulness of these results for practical designs of source coding algorithms is also discussed.

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