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Shannon's two-way channel problem has attracted the attention of information theorists for many years. In a classic paper Shannon gave both an outer and an inner bound to the capacity region of the two-way channel. Schalkwijk recently obtained an improvement to the inner bound for the Blackwell multiplying channel (BMC). We present the first improvements on Shannon's outer bound. Calculation shows that our results are close to optimum when applied to the BMC.
Date of Publication: May 1986