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Record W26941774

Generalized Entropy Theory of Information and Market Patterns

2005· article· en· W26941774 on OpenAlexaff
Jing Chen

Bibliographic record

VenueSSRN Electronic Journal · 2005
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicComplex Systems and Time Series Analysis
Canadian institutionsUniversity of Northern British Columbia
Fundersnot available
KeywordsInformation theoryEquivocationEntropy (arrow of time)Information asymmetryInformation qualityValue of informationInformation marketInformation processingInformation source (mathematics)MicroeconomicsEconomicsEconometricsActuarial scienceFinancial economicsInformation systemMathematical economicsMathematicsPsychologyStatistics
DOInot available

Abstract

fetched live from OpenAlex

We develop an economic theory of information generalized from the entropy theory of information and show that it provides the foundation to understand market behavior. One fundamental result from this information theory is that information with higher value is in general more costly. Another fundamental result from this information theory is that the amount of information one can receive is the amount of information generated minus equivocation. The level of equivocation, which is the measure of information asymmetry, is determined by the correlation between the source of information and the receiver of information. How much information one can receive depends on the background knowledge of the receiver. In general, industry insiders understand information earlier than other investors; large investors, who are willing to spend more to collect and analyze information, generally utilize different kinds of information from small investors. This heterogeneity in information processing by the investment public offers a simple understanding of the price and volume patterns uncovered in the empirical studies, which have been unable to be explained by the existing theories in behavioral finance.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.003
metaresearch head score (Gemma)0.013
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.004
Threshold uncertainty score0.014

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0030.013
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0030.002
Science and technology studies0.0010.003
Scholarly communication0.0030.007
Open science0.0010.002
Research integrity0.0010.001
Insufficient payload (model declined to judge)0.0040.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.008
GPT teacher head0.185
Teacher spread0.177 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations18
Published2005
Admission routes1
Has abstractyes

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