[algorithm] An efficient compression algorithm for short text strings

If you are talking about actually compressing the text not just shortening then Deflate/gzip (wrapper around gzip), zip work well for smaller files and text. Other algorithms are highly efficient for larger files like bzip2 etc.

Wikipedia has a list of compression times. (look for comparison of efficiency)

Name       | Text         | Binaries      | Raw images
-----------+--------------+---------------+-------------
7-zip      | 19% in 18.8s | 27% in  59.6s | 50% in 36.4s
bzip2      | 20% in  4.7s | 37% in  32.8s | 51% in 20.0s
rar (2.01) | 23% in 30.0s | 36% in 275.4s | 58% in 52.7s
advzip     | 24% in 21.1s | 37% in  70.6s | 57& in 41.6s
gzip       | 25% in  4.2s | 39% in  23.1s | 60% in  5.4s
zip        | 25% in  4.3s | 39% in  23.3s | 60% in  5.7s