A New Interpretation of Information Rate.¶
Kelly, J. L. (1956). A New Interpretation of Information Rate. Bell System Technical Journal, 35(4), 917-926.
Cited by¶
3 citations across 3 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Mass
- Research funding and science policy. Targeted, concentrated programs versus distributed small grants — the policy bet that certain problems have threshold response curves and require concentrated effort to clear, where distributed funding dissipates. Change management. Concentrating political and attention resources at the inflection point of a transformation — guiding coalitions, short-term wins — rather than spreading effort across all parts of the organization at once. Investing. Concentrated portfolios and optimal bet sizing versus diversification — concentration pays when conviction is high and the payoff distribution is fat-tailed.
This sourceDerives the optimal bet-sizing criterion under which fat-tailed, high-conviction payoffs reward concentration.
- Research funding and science policy. Targeted, concentrated programs versus distributed small grants — the policy bet that certain problems have threshold response curves and require concentrated effort to clear, where distributed funding dissipates. Change management. Concentrating political and attention resources at the inflection point of a transformation — guiding coalitions, short-term wins — rather than spreading effort across all parts of the organization at once. Investing. Concentrated portfolios and optimal bet sizing versus diversification — concentration pays when conviction is high and the payoff distribution is fat-tailed.
- Variance Bounds Selection Response
- Kelly-style portfolio rebalancing makes growth-rate improvement depend on variance across asset returns, with rebalancing as the regenerator.
This sourceGrowth-rate optimal betting/rebalancing whose improvement depends on variance across returns.
- Kelly-style portfolio rebalancing makes growth-rate improvement depend on variance across asset returns, with rebalancing as the regenerator.
Mechanisms¶
- Progressive Reinvestment Allocation
- … to proven compounding: it neither starves a real flywheel nor over-feeds a mirage, and the cap keeps genuine option value in reserve — the principled backbone here is the growth-optimal reinvestment fraction, where betting more than the evidence supports raises the risk of ruin without improving long-run growth.
This sourceDerives a betting fraction that maximizes long-run capital growth and shows that wagering beyond it reduces the asymptotic growth rate.
- … to proven compounding: it neither starves a real flywheel nor over-feeds a mirage, and the cap keeps genuine option value in reserve — the principled backbone here is the growth-optimal reinvestment fraction, where betting more than the evidence supports raises the risk of ruin without improving long-run growth.
Verification¶
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