We focus attention on the particular thermodynamic relation dU=TdS+δW. Using information theory concepts we show that, for a reversible process in which intensive variables change, microscopic considerations related to this thermodynamic relation make the informational contents of,...

It has been well-known since the pioneering work of Claude Shannon in the 1940s that a message transmitted with optimal efficiency over a channel of limited bandwidth is indistinguishable from random noise to a receiver who is unfamiliar with the language in which the message is written. In this...

This study introduces the constrained forms of the Shannon information entropy and Kullback–Leibler cross-entropy functions. Applicable to a closed system, these functions incorporate the constraints on the system in a generic fashion, irrespective of the form or even the number of the...

In den letzten drei Jahrhunderten ist die Wirtschaft in vielen Ländern - langfristig gesehen - dauernd gewachsen. Materieller Mangel ist in den entwickelten Ländern weitgehend verschwunden. Für die Erkenntnis der Leistungsfähigkeit der Marktwirtschaft wie der Defizite der sozialistischen...

We use an information-theoretic approach to interpret Engle's (1982) and Bollerslev's (1986) GARCH model as a model for the motion in time of the expected conditional second power moment. This interpretation is used to show how these models may be generalized, if we use alternative measures of...

This paper proposes the Shannon entropy as an appropriate one-dimensional measure of behavioural trading patterns in financial markets. The concept is applied to the illustrative example of algorithmic vs. non-algorithmic trading and empirical data from Deutsche Börse's electronic cash equity...

The main goal of this article is to present a statistical study of decision tree learning algorithms based on the measures of different parametric entropies. Partial empirical evidence is presented to support the conjecture that the parameter adjusting of different entropy measures might bias...