Original by Chris Hillman
(Last modified by Chris Hillman 2 Feb 2001.)
One of the first applications of Shannon's concept of information to economics was a famous
paper by Kelley, who was able to show that mutual information can be interpreted in a certain
gambling model as measuring the expected rate of financial loss by the gambler.
Since then, many other applications have been made.
Back to
Entropy on the World Wide Web.