LIPIcs.ICALP.2016.122.pdf
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It is shown that the shortest-grammar problem remains NP-complete if the alphabet is fixed and has a size of at least 24 (which settles an open question). On the other hand, this problem can be solved in polynomial-time, if the number of nonterminals is bounded, which is shown by encoding the problem as a problem on graphs with interval structure. Furthermore, we present an O(3n) exact exponential-time algorithm, based on dynamic programming. Similar results are also given for 1-level grammars, i.e., grammars for which only the start rule contains nonterminals on the right side (thus, investigating the impact of the "hierarchical depth" on the complexity of the shortest-grammar problem).
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