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In 1968, Witsenhausen introduced his famous counterexample where he showedthat even in the simple linear quadratic static team decision problem, complexnonlinear decisions could outperform any given linear decision. This problemhas served as a benchmark problem for decades where researchers try to achievethe optimal solution. This paper introduces a systematic iterativesource--channel coding approach to solve problems of the WitsenhausenCounterexample-character. The advantage of the presented approach is itssimplicity. Also, no assumptions are made about the shape of the space ofpolicies. The minimal cost obtained using the introduced method is 0.16692462,which is the lowest known to date.

Iterative Source-Channel Coding Approach to Witsenhausen's Counterexample