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On the entropy function in sociotechnical systems.

E W Montroll1

  • 1Institute for Physical Science and Technology, University of Maryland, College Park, Maryland 20742.

Proceedings of the National Academy of Sciences of the United States of America
|December 1, 1981
PubMed
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Information entropy, a key concept in communication systems, is also found in traffic flow and Sears Roebuck

Area of Science:

  • Information Theory
  • Traffic Flow Dynamics
  • Economic History

Background:

  • Shannon's entropy function is fundamental to information transfer.
  • The discrete entropy function (H) applies to systems with discrete states.
  • Continuum entropy is crucial for continuous probability distributions.

Purpose of the Study:

  • To demonstrate the natural occurrence of discrete entropy in single-lane traffic flow.
  • To analyze price distribution functions from Sears Roebuck catalogues.
  • To infer implications for entropy maximization in merchandising.

Main Methods:

  • Applying discrete entropy (H) to single-lane traffic flow models.
  • Analyzing Sears Roebuck catalogue price data over 75 years.

Related Experiment Videos

  • Deriving price distribution functions to study dispersion.

    • Main Results:

    • The discrete entropy function (H) naturally appears in single-lane traffic flow.
    • Dispersion in the logarithm of catalogue prices remained constant for over 75 years.
    • Sears Roebuck's policies may have inadvertently maximized continuum entropy for log prices.

    Conclusions:

    • Entropy functions have broader applications beyond communication systems.
    • Historical merchandising data reveals consistent price dispersion patterns.
    • Business policies can influence entropy maximization in economic systems.