We can state two simple properties of optimal regions and Reconstruction points for the quantization of a single random variable:
These two properties enable us to construct a simple algorithm to find a “good” quantizer: We start with a set of reconstruction points, find the opti- mal set of reconstruction regions (which are the nearest-neighbor regions with respect to the distortion measure), then find the optimal reconstruc- tion points for these regions (the centroids of these regions if the distortion is squared error), and then repeat the iteration for this new set of recon- struction points. The expected distortion is decreased at each stage in the algorithm, so the algorithm will converge to a local minimum of the dis- tortion. This algorithm is called the Lloyd algorithm [363] (for real-valued random variables) or the generalized Lloyd algorithm [358] (for vector- valued random variables) and is frequently used to design quantization systems.