The Communication Theory Model and Economics

Samuel Bagno

©1955 IRE (now IEEE). Reprinted, with permission, from IRE Convention Record, 1955 Part 4 "Computers, Information Theory, Automatic Control.

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Contents

(Note: If a Figure is referenced in the text is not on that page, you can bring it up in a new window by clicking the "figure x" text on the page. Also, the small illegible graphs on the last two pages can be brought up enlarged in a new window by clicking on them. The figures in question are figures 2, 3, 4, 5, and 8)

I. Introduction
II Formulation of the problem in the language of information theory
III. The Entropy Limitation--The entropy-output postulate
IV Synergy--the summing of entropy
V The measure of entropy
VI. Establishment of value measure
VII. The ergodic realm
VIII. The economic channel
IX The question of conservation
X. The increasing money supply
XI. Maintaining channel capacity--the money disorganization theorem
XII. The balanced budget
XIII. Example of disorganization of money supply
XIV Further implications of the varying channel
XV. Discussion of implications of money disorganiztion theorem
XVI. Money and other communications
XVII. Entropy, Banking and debt
XVIII The cyclic behavio of the channel
XIX The form of economic organization
XX. Capitalism versus socialism as implied by this analysis
XXI. Conclusion and suggested experiments
References
graphs