94 results back to index

pages: 550 words: 154,725

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The Idea Factory: Bell Labs and the Great Age of American Innovation
** by
Jon Gertner

Albert Einstein, back-to-the-land, Black Swan, business climate, Claude Shannon: information theory, Clayton Christensen, complexity theory, corporate governance, cuban missile crisis, Edward Thorp, horn antenna, Hush-A-Phone, information retrieval, invention of the telephone, James Watt: steam engine, Karl Jansky, knowledge economy, Leonard Kleinrock, Metcalfe’s law, Nicholas Carr, Norbert Wiener, Picturephone, Richard Feynman, Robert Metcalfe, Sand Hill Road, Silicon Valley, Skype, Steve Jobs, Telecommunications Act of 1996, traveling salesman, undersea cable, uranium enrichment, William Shockley: the traitorous eight

Shannon Collection, Library of Congress. 4 Erico Marui Guizzo, “The Essential Message: Claude Shannon and the Making of Information Theory” (master’s thesis, MIT, 2003). 5 Len Kleinrock, a former student of Shannon’s, author interview. 6 Liversidge, “Profile of Claude Shannon.” 7 Claude Shannon, letter to Dr. V. Bush, December 13, 1939. Shannon Collection, Library of Congress. 8 Liversidge, “Profile of Claude Shannon.” Biographical facts relating to Shannon’s father are in a personal letter Shannon wrote, October 20, 1981, to Ms. Shari Bukowski: “[My father] was born in Oxford, New Jersey in 1862, came to Ovid, Michigan when very young and was raised and graduated there. He was a traveling salesman for a period and came to Gaylord shortly after 1900. There he bought a furniture and undertaking business, and, having confidence in Gaylord’s future, built the Shannon Block and Post Office building on Main Street.”

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Bush, March 8, 1940. Shannon Collection, Library of Congress. 13 Claude Shannon, letter to Dr. V. Bush, February 16, 1939. “Off and on I have been working on an analysis of some of the fundamental properties of general systems for the transmission of intellegence [sic], including telephony, radio, television, telegraphy, etc.” Shannon, Collected Papers, p. 455. 14 Claude Shannon, oral history conducted in July 1982 by Robert Price, IEEE History Center, New Brunswick, NJ. 15 Claude Shannon, interview with Robert Price, December 20, 1983. Shannon said: “… a lot of information theory … I had worked out before, during the five years between 1940 and 1945. Much of that work I did at home.” Shannon’s penciled manuscripts: author’s review, Shannon Collection, Library of Congress. 16 Betty Shannon, author interview. 17 T.

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It seemed lost on Shannon that the scientist who had declared that any message could be sent through any noisy channel with almost perfect fidelity was now himself a proven exception. Transmissions could reach Claude Shannon. But then they would fail to go any farther. Information theory, in the meantime, was getting ready for the masses. In 1953, one of the premier science journalists of the era, Francis Bello of Fortune magazine, profiled Shannon along with Norbert Wiener, an MIT mathematician who was putting forward theories on the command and control of machines, a discipline closely related to Shannon’s work on information. Wiener called his work cybernetics. “Within the last five years a new theory has appeared that seems to bear some of the same hallmarks of greatness,” Bello wrote. “The new theory, still almost unknown to the general public, goes under either of two names: communication theory or information theory. Whether or not it will ultimately rank with the enduring great is a question now being resolved in a score of major laboratories here and abroad.”11 Bello didn’t say whether Shannon was working toward any kind of resolution, and in fact he wasn’t.

pages: 855 words: 178,507

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The Information: A History, a Theory, a Flood
** by
James Gleick

Ada Lovelace, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, AltaVista, bank run, bioinformatics, Brownian motion, butterfly effect, citation needed, Claude Shannon: information theory, clockwork universe, computer age, conceptual framework, crowdsourcing, death of newspapers, discovery of DNA, Donald Knuth, double helix, Douglas Hofstadter, en.wikipedia.org, Eratosthenes, Fellow of the Royal Society, Gödel, Escher, Bach, Henri Poincaré, Honoré de Balzac, index card, informal economy, information retrieval, invention of the printing press, invention of writing, Isaac Newton, Jacquard loom, Jaron Lanier, jimmy wales, Johannes Kepler, John von Neumann, Joseph-Marie Jacquard, lifelogging, Louis Daguerre, Marshall McLuhan, Menlo Park, microbiome, Milgram experiment, Network effects, New Journalism, Norbert Wiener, Norman Macrae, On the Economy of Machinery and Manufactures, PageRank, pattern recognition, phenotype, Pierre-Simon Laplace, pre–internet, Ralph Waldo Emerson, RAND corporation, reversible computing, Richard Feynman, Rubik’s Cube, Simon Singh, Socratic dialogue, Stephen Hawking, Steven Pinker, stochastic process, talking drums, the High Line, The Wisdom of Crowds, transcontinental railway, Turing machine, Turing test, women in the workforce

♦ “THE MERE SOUNDS OF SPEECH”: Edward Sapir, Language: An Introduction to the Study of Speech (New York: Harcourt, Brace, 1921), 21. ♦ “D MEASURES, IN A SENSE, HOW MUCH A TEXT”: “Communication Theory of Secrecy Systems,” in Claude Shannon, Collected Papers, 85. ♦ “THE ENEMY IS NO BETTER OFF”: Ibid., 97. ♦ “THE ‘MEANING’ OF A MESSAGE IS GENERALLY IRRELEVANT”: “Communication Theory—Exposition of Fundamentals,” IRE Transactions on Information Theory, no. 1 (February 1950), in Claude Shannon, Collected Papers, 173. ♦ “WHAT GIBBS DID FOR PHYSICAL CHEMISTRY”: Warren Weaver letter to Claude Shannon, 27 January 1949, Manuscript Division, Library of Congress. ♦ “SOMETHING OF A DELAYED ACTION BOMB”: John R. Pierce, “The Early Days of Information Theory,” IEEE Transactions on Information Theory 19, no. 1 (1973): 4. ♦ “THE FUNDAMENTAL PROBLEM OF COMMUNICATION”: Claude Elwood Shannon and Warren Weaver, The Mathematical Theory of Communication (Urbana: University of Illinois Press, 1949), 31

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New Wires, New Logic Chapter 7. Information Theory Chapter 8. The Informational Turn Chapter 9. Entropy and Its Demons Chapter 10. Life’s Own Code Chapter 11. Into the Meme Pool Chapter 12. The Sense of Randomness Chapter 13. Information Is Physical Chapter 14. After the Flood Chapter 15. New News Every Day Epilogue Acknowledgments Notes Bibliography Index A Note About The Author Illustration Credits PROLOGUE The fundamental problem of communication is that of reproducing at one point either exactly or approximately a message selected at another point. Frequently the messages have meaning. —Claude Shannon (1948) AFTER 1948, which was the crucial year, people thought they could see the clear purpose that inspired Claude Shannon’s work, but that was hindsight.

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♦ “BY THE SPEED OF TRANSMISSION OF INTELLIGENCE IS MEANT”: H. Nyquist, “Certain Factors Affecting Telegraph Speed,” 333. ♦ “THE CAPACITY OF A SYSTEM TO TRANSMIT”: R. V. L. Hartley, “Transmission of Information,” 537. 7. INFORMATION THEORY ♦ “PERHAPS COMING UP WITH A THEORY”: Jon Barwise, “Information and Circumstance,” Notre Dame Journal of Formal Logic 27, no. 3 (1986): 324. ♦ SAID NOTHING TO EACH OTHER ABOUT THEIR WORK: Shannon interview with Robert Price: “A Conversation with Claude Shannon: One Man’s Approach to Problem Solving,” IEEE Communications Magazine 22 (1984): 125; cf. Alan Turing to Claude Shannon, 3 June 1953, Manuscript Division, Library of Congress. ♦ “NO, I’M NOT INTERESTED IN DEVELOPING A POWERFUL BRAIN”: Andrew Hodges, Alan Turing: The Enigma (London: Vintage, 1992), 251. ♦ “A CONFIRMED SOLITARY”: Max H.

pages: 389 words: 109,207

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Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street
** by
William Poundstone

Albert Einstein, anti-communist, asset allocation, beat the dealer, Benoit Mandelbrot, Black-Scholes formula, Brownian motion, buy and hold, buy low sell high, capital asset pricing model, Claude Shannon: information theory, computer age, correlation coefficient, diversified portfolio, Edward Thorp, en.wikipedia.org, Eugene Fama: efficient market hypothesis, high net worth, index fund, interest rate swap, Isaac Newton, Johann Wolfgang von Goethe, John Meriwether, John von Neumann, Kenneth Arrow, Long Term Capital Management, Louis Bachelier, margin call, market bubble, market fundamentalism, Marshall McLuhan, Myron Scholes, New Journalism, Norbert Wiener, offshore financial centre, Paul Samuelson, publish or perish, quantitative trading / quantitative ﬁnance, random walk, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, Rubik’s Cube, short selling, speech recognition, statistical arbitrage, The Predators' Ball, The Wealth of Nations by Adam Smith, transaction costs, traveling salesman, value at risk, zero-coupon bond, zero-sum game

Many of these artists were acquainted with at least the name of Claude Shannon and the conceptual gist of his theory. To people like Cage and Rauschenberg, who were exploring how minimal a work of music or art may be, information theory appeared to have something to say—even if no one was ever entirely sure what. Shannon came to feel that information theory had been over-sold. In a 1956 editorial he gently derided the information theory “bandwagon.” People who did not understand the theory deeply were seizing on it as a trendy metaphor and overstating its relevance to fields remote from its origin. Other theorists such as Norbert Wiener and Peter Elias took up this theme. It was time, Elias acidly wrote, to stop publishing papers with titles like “Information Theory, Photosynthesis, and Religion.” To Shannon, Wiener, and Elias, the question of information theory’s relevance was more narrowly defined than it was for Marshall McLuhan.

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In 1956 a young scientist pondering his employer’s ambivalent relationship with bookmaking devised the most successful gambling system of all time. PART ONE Entropy Claude Shannon LIFE IS A GAMBLE. There are few sure things, least of all in the competitive world of academic recruitment. Claude Shannon was as close to a sure thing as existed. That is why the Massachusetts Institute of Technology was prepared to do what was necessary to lure Shannon away from AT&T’s Bell Labs, and why the institute was delighted when Shannon became a visiting professor in 1956. Shannon had done what practically no one else had done since the Renaissance. He had single-handedly invented an important new science. Shannon’s information theory is an abstract science of communication that lies behind computers, the Internet, and all digital media. “It’s said that it is one of the few times in history where somebody founded the field, asked all the right questions, and proved most of them and answered them all at once,” noted Cornell’s Toby Berger.

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“This, of course, involves not only written and oral speech, but also music, the pictorial arts, the theater, the ballet, and in fact all human behavior.” These words were written by Shannon’s former employer Warren Weaver. Weaver’s essay presented information theory as a humanistic discipline—perhaps misleadingly so. Strongly influenced by Shannon, media theorist Marshall McLuhan coined the term “information age” in Understanding Media (1964). Oracular as some of his pronouncements were, McLuhan spoke loud and clear with that concise coinage. It captured the way the electronic media (still analog in the 1960s) were changing the world. It implied, more presciently than McLuhan could have known, that Claude Shannon was a prime mover in that revolution. There were earnest attempts to apply information theory to semantics, linguistics, psychology, economics, management, quantum physics, literary criticism, garden design, music, the visual arts, and even religion.

pages: 229 words: 67,599

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The Logician and the Engineer: How George Boole and Claude Shannon Created the Information Age
** by
Paul J. Nahin

Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, Any sufficiently advanced technology is indistinguishable from magic, Claude Shannon: information theory, conceptual framework, Edward Thorp, Fellow of the Royal Society, finite state, four colour theorem, Georg Cantor, Grace Hopper, Isaac Newton, John von Neumann, knapsack problem, New Journalism, Pierre-Simon Laplace, reversible computing, Richard Feynman, Schrödinger's Cat, Steve Jobs, Steve Wozniak, thinkpad, Thomas Bayes, Turing machine, Turing test, V2 rocket

See diode potentiometer probability: conditional; conservation of; constraint; inclusion-exclusion theorem; independence; mutually exclusive events; theorem of total product-of-sums pull-down resistor pull-up resistor qubit quantum: logic; mechanics Rad, Tibor. See also Busy Beaver Game redundancy Reilly, Sidney relay: crummy; theory of Riordan, John RS flip-flop sample (point); (space) shannon (information unit). See also bit Shannon, Catherine (sister of Claude) Shannon, Claude (father of Claude) Shannon, Claude Elwood; codes by; life of; on probability; his salesmen and engineers puzzle; and switches; and time machines; and Turing machines Shannon, Mabel (mother of Claude) Shannon-Hagelbarger theorem Sheffer, Henry Shestakov, Victor Shor, Peter. See also algorithm (Shor’s) Sklansky, Jack source rate sphere-packing spooky-action-at-a-distance. See also quantum mechanics square-root of NOT state-transition state-vector; collapse of. See also quantum mechanics stored-program stroke function sum-of-products switch; bounce; parallel; series; voltage-controlled.

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The Logician and the Engineer Frontispiece: Reproduced by arrangement with the artist. The Logician and the Engineer How George Boole and Claude Shannon Created the Information Age PAUL J . NAHIN PRINCETON UNIVERSITY PRESS PRINCETON AND OXFORD Copyright © 2013 by Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, 6 Oxford Street, Woodstock, Oxfordshire OX20 1TW press.princeton.edu All Rights Reserved Library of Congress Cataloging-in-Publication Data Nahin, Paul J. The logician and the engineer : how George Boole and Claude Shannon created the information age / Paul J. Nahin. pages cmIncludes bibliographical references and index. ISBN 978-0-691-15100-7 1. Boole, George, 1815–1864. 2.

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The second part of Chapter 3 is, therefore, based only on several short biographical remembrances, interviews Shannon gave some years before his death, and obituary notices. The most useful to me were (a) Robert G. Gallager, “Claude Elwood Shannon,” Proceedings of the American Philosophical Society, June 2003, pp. 187–191. (b) Anthony Liversidge, “Profile of Claude Shannon,” Omni, August 1987 (reprinted in Shannon’s Collected Papers, N.J.A. Sloane and Aaron D. Wyner, editors, IEEE Press, 1993). (c) Solomon W. Golomb et al., “Claude Elwood Shannon (1916–2001),” Notices of the American Mathematical Society, January 2002, pp. 8–16. (d) James F. Crow, “Shannon’s Brief Foray into Genetics,” Genetics, November 2001, pp. 915–917. 10. Liversidge, “Profile of Claude Shannon.” 4 Boolean Algebra They who are acquainted with the present state of the theory of Symbolical Algebra, are aware that the validity of the processes of analysis does not depend upon the interpretation of the symbols which are employed, but solely upon the laws of their combination

pages: 352 words: 120,202

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Tools for Thought: The History and Future of Mind-Expanding Technology
** by
Howard Rheingold

Ada Lovelace, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, card file, cellular automata, Claude Shannon: information theory, combinatorial explosion, computer age, conceptual framework, Conway's Game of Life, Douglas Engelbart, Dynabook, experimental subject, Hacker Ethic, Howard Rheingold, interchangeable parts, invention of movable type, invention of the printing press, Jacquard loom, John von Neumann, knowledge worker, Marshall McLuhan, Menlo Park, Norbert Wiener, packet switching, pattern recognition, popular electronics, post-industrial society, RAND corporation, Robert Metcalfe, Silicon Valley, speech recognition, Steve Jobs, Steve Wozniak, Stewart Brand, Ted Nelson, telemarketer, Turing machine, Turing test, Vannevar Bush, Von Neumann architecture

It turns out that coding and storing happen to be central problems in the logical design of computing machines and the creation of software. The basic scientific work that resulted in information theory did not originate from any investigation of computation, however, but from an analysis of communication. Claude Shannon, several years younger than Turing, working about a year after the British logician's discoveries in metamathematics, did another nifty little bit of graduate work that tied together theory and engineering, philosophy, and machinery. Chapter Six: Inside Information His unicycle skills notwithstanding, Claude Shannon has been more flamboyant but no less brilliant than his elder colleagues. Rather than advertising his own genius like Wiener, or blitzing the world of science with salvo after salvo of landmark findings like von Neumann, Claude Shannon has published unprolifically, and he spends more time attempting to diminish rather than embellish the mythology that grew up around his infrequent but monumental contributions.

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Wiener's conception of cybernetics was partially derived from "pure" scientific work in mathematics, biology, and neurophysiology, and partially derived from the grimly applied science of designing automatic antiaircraft guns. Cybernetics was about the nature of control and communication systems in animals, humans, and machines. Claude Shannon, another lone-wolf genius, is still known to his neighbors in Cambridge, Massachusetts, for his skill at riding a motorcycle. In 1937, as a twenty-one-year-old graduate student, he showed that Boole's logical algebra was the perfect tool for analyzing the complex networks of switching circuits used in telephone systems and, later, in computers. During the war and afterward, Shannon established the mathematical foundation of information theory. Together with cybernetics, this collection of theorems about information and communication created a new way to understand people and machines--and established information as a cosmic fundamental, along with energy and matter.

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Because patterns of electrical pulses were now used to enclose logical operations like "and," "or," and the all important "if," as well as the calculator's usual fare of "plus," "minus," "multiply," and "divide," there arose a need for equations to describe the logical properties of computer circuits. Ideally, the same set of mathematical tools would work for both electrical and logical operations. The problem of the late 1930s was that nobody knew of any mathematical operations that had the power to describe both logical and electrical networks. Then the right kind of mind looked in the right place. An exceptionably astute graduate student at MIT named Claude Shannon, who later invented information theory, found Boole's algebra to be exactly what the engineers were looking for. Without Boole, a poverty-stricken, self-taught mathematics teacher who was born the same year as Ada, the critical link between logic and mathematics might never have been accomplished. While the Analytical Engine was an inspiring attempt, it had remarkably little effect on the later thinkers who created modern computers.

pages: 370 words: 94,968

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The Most Human Human: What Talking With Computers Teaches Us About What It Means to Be Alive
** by
Brian Christian

4chan, Ada Lovelace, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Bertrand Russell: In Praise of Idleness, carbon footprint, cellular automata, Claude Shannon: information theory, cognitive dissonance, commoditize, complexity theory, crowdsourcing, David Heinemeier Hansson, Donald Trump, Douglas Hofstadter, George Akerlof, Gödel, Escher, Bach, high net worth, Isaac Newton, Jacques de Vaucanson, Jaron Lanier, job automation, l'esprit de l'escalier, Loebner Prize, Menlo Park, Ray Kurzweil, RFID, Richard Feynman, Ronald Reagan, Skype, Social Responsibility of Business Is to Increase Its Profits, starchitect, statistical model, Stephen Hawking, Steve Jobs, Steven Pinker, Thales of Miletus, theory of mind, Thomas Bayes, Turing machine, Turing test, Von Neumann architecture, Watson beat the top human players on Jeopardy!, zero-sum game

The Turing test, bless it, has now given us a yardstick for this shame. A Mathematical Theory of Communication It seems, at first glance, that information theory—the science of data transmission, data encryption, and data compression—would be mostly a question of engineering, having little to do with the psychological and philosophical questions that surround the Turing test and AI. But these two ships turn out to be sailing quite the same seas. The landmark paper that launched information theory is Claude Shannon’s 1948 “A Mathematical Theory of Communication,” and as it happens, this notion of scientifically evaluating “communication” binds information theory and the Turing test to each other from the get-go. What is it, exactly, that Shannon identified as the essence of communication? How do you measure it?

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For more, see Hofstadter’s I Am a Strange Loop. 56 Benjamin Seider, Gilad Hirschberger, Kristin Nelson, and Robert Levenson, “We Can Work It Out: Age Differences in Relational Pronouns, Physiology, and Behavior in Marital Conflict,” Psychology and Aging 24, no. 3 (September 2009), pp. 604–13. 10. High Surprisal 1 Claude Shannon, “A Mathematical Theory of Communication,” Bell System Technical Journal 27 (1948), pp. 379–423, 623–56. 2 average American teenager: Katie Hafner, “Texting May Be Taking a Toll,” New York Times, May 25, 2009. 3 The two are in fact related: For more information on the connections between Shannon (information) entropy and thermodynamic entropy, see, e.g., Edwin Jaynes, “Information Theory and Statistical Mechanics,” Physical Review 106, no. 4, (May 1957), pp. 620–30; and Edwin Jaynes, “Information Theory and Statistical Mechanics II,” Physical Review 108, no. 2 (October 1957), pp. 171–90. 4 Donald Barthelme, “Not-Knowing,” in Not-Knowing: The Essays and Interviews of Donald Barthelme, edited by Kim Herzinger (New York: Random House, 1997). 5 Jonathan Safran Foer, Extremely Loud and Incredibly Close (Boston: Houghton Mifflin, 2005). 6 The cloze test comes originally from W.

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Epilogue: The Unsung Beauty of the Glassware Cabinet Acknowledgments Notes The beautiful changes as a forest is changed By a chameleon’s tuning his skin to it; As a mantis, arranged On a green leaf, grows Into it, makes the leaf leafier … –RICHARD WILBUR I think metaphysics is good if it improves everyday life; otherwise forget it. –ROBERT PIRSIG As President, I believe that robotics can inspire young people to pursue science and engineering. And I also want to keep an eye on those robots, in case they try anything. –BARACK OBAMA 0. Prologue Claude Shannon, artificial intelligence pioneer and founder of information theory, met his wife, Mary Elizabeth, at work. This was Bell Labs in Murray Hill, New Jersey, the early 1940s. He was an engineer, working on wartime cryptography and signal transmission. She was a computer. 1. Introduction: The Most Human Human I wake up five thousand miles from home in a hotel room with no shower: for the first time in fifteen years, I take a bath.

pages: 339 words: 94,769

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Possible Minds: Twenty-Five Ways of Looking at AI
** by
John Brockman

AI winter, airport security, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, artificial general intelligence, Asilomar, autonomous vehicles, basic income, Benoit Mandelbrot, Bill Joy: nanobots, Buckminster Fuller, cellular automata, Claude Shannon: information theory, Daniel Kahneman / Amos Tversky, Danny Hillis, David Graeber, easy for humans, difficult for computers, Elon Musk, Eratosthenes, Ernest Rutherford, finite state, friendly AI, future of work, Geoffrey West, Santa Fe Institute, gig economy, income inequality, industrial robot, information retrieval, invention of writing, James Watt: steam engine, Johannes Kepler, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, Kickstarter, Laplace demon, Loebner Prize, market fundamentalism, Marshall McLuhan, Menlo Park, Norbert Wiener, optical character recognition, pattern recognition, personalized medicine, Picturephone, profit maximization, profit motive, RAND corporation, random walk, Ray Kurzweil, Richard Feynman, Rodney Brooks, self-driving car, sexual politics, Silicon Valley, Skype, social graph, speech recognition, statistical model, Stephen Hawking, Steven Pinker, Stewart Brand, strong AI, superintelligent machines, supervolcano, technological singularity, technoutopianism, telemarketer, telerobotics, the scientific method, theory of mind, Turing machine, Turing test, universal basic income, Upton Sinclair, Von Neumann architecture, Whole Earth Catalog, Y2K, zero-sum game

Inspired by this set of ideas, I began to develop a theme, a mantra of sorts, that has informed my endeavors since: “new technologies = new perceptions.” Inspired by communications theorist Marshall McLuhan, architect-designer Buckminster Fuller, futurist John McHale, and cultural anthropologists Edward T. “Ned” Hall and Edmund Carpenter, I started reading avidly in the fields of information theory, cybernetics, and systems theory. McLuhan suggested I read biologist J. Z. Young’s Doubt and Certainty in Science, in which he said that we create tools and we mold ourselves through our use of them. The other text he recommended was Warren Weaver and Claude Shannon’s 1949 paper “Recent Contributions to the Mathematical Theory of Communication,” which begins: “The word communication will be used here in a very broad sense to include all of the procedures by which one mind may affect another. This, of course, involves not only written and oral speech, but also music, the pictorial arts, the theater, the ballet, and in fact all human behavior.”

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Wiener also imagined machine-to-machine feedback loops driving huge advances in automation, even for tasks that had previously relied on human judgment. “The machine plays no favorites between manual labor and white-collar labor,” he observed. For all that, many of the central arguments in The Human Use of Human Beings seem closer to the 19th century than the 21st. In particular, although Wiener made reference throughout to Claude Shannon’s then-new work on information theory, he seems not to have fully embraced Shannon’s notion of information as consisting of irreducible, meaning-free bits. Since Wiener’s day, Shannon’s theory has come to undergird recent advances in “Big Data” and “deep learning,” which makes it all the more interesting to revisit Wiener’s cybernetic imagination. How might tomorrow’s artificial intelligence be different if practitioners were to reinvest in Wiener’s guiding vision of “information”?

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Wiener’s three c’s (command, control, communication) drew on the mathematics of probability to formalize systems (whether biological or mechanical) theorized as a set of inputs of information achieving outputs of actions in an environment—a muscular, fleshy agenda often minimized in genealogies of AI. But the etymology does little to capture the excitement felt by participants, as mathematics joined theoretical biology (Arturo Rosenblueth) and information theory (Claude Shannon, Walter Pitts, Warren McCulloch) to produce a barrage of interdisciplinary research and publications viewed as changing not just the way science was done but the way future humans would engage with the technosphere. As Wiener put it, “We have modified our environment so radically that we must now modify ourselves in order to exist.”* The pressing question is: How are we modifying ourselves?

pages: 759 words: 166,687

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Between Human and Machine: Feedback, Control, and Computing Before Cybernetics
** by
David A. Mindell

Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Charles Lindbergh, Claude Shannon: information theory, Computer Numeric Control, discrete time, Frederick Winslow Taylor, From Mathematics to the Technologies of Life and Death, James Watt: steam engine, John von Neumann, Menlo Park, Norbert Wiener, Paul Samuelson, Ronald Reagan, Silicon Valley, Spread Networks laid a new fibre optics cable between New York and Chicago, telerobotics, Turing machine

Like Wiener, they pointed out that predicting time-series data had broad application to “weather records, stock market prices, production statistics, and the like.” 21 Just a few years later Claude Shannon expanded these ideas in his 1948 paper, “A Mathematical Theory of Communication,” which famously created information theory. 22 Following Nyquist’s and Hartley’s analyses years earlier, Shannon defined the act of communication as transferring a given message, or a series of symbols, from one place to another (from one person to another or from one machine to another) through a noisy channel of finite bandwidth. He provided a measure of channel capacity, which led to a theory of efficient coding, and techniques for maximizing the available capacity of a channel. After initial publication in the technical literature, Shannon’s theory was published as a small book that included a popular introduction and explication of information theory by Warren Weaver. Weaver not only explained the theory but also suggested wide implications beyond electrical communications. 23 Shannon had thought about this topic since at least 1939, he drew on his own experience in cryptography during the war, and he cited Wiener’s paper.

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When analyzing the number of symbols required to represent a continuous signal and send it down the line, Nyquist employed only two symbols, which he represented by the numbers 0 and 1. Indeed, Nyquist’s and Hartley’s notions began to resemble digital representations, as their techniques analyzed the subtleties of converting discrete pulses to and from the continuous world. These men laid the groundwork for the theory of information that Claude Shannon would articulate in 1948. 79 In the first paragraph of his famous work, Shannon cited Nyquist’s and Hartley’s work on transmission and information theory: each related the abstraction of signals to the extension of human activity by the telephone’s spreading network. Conclusion Harold Black, Hendrik Bode, and Harry Nyquist brought negative feedback and the vacuum tube within the realm of signals, frequencies, and networks. They furthered the separation of the message inherent in the telephone signal from the energy required to transmit it down the line.

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These questions were just crystallizing when World War II began, and the war spawned a set of research projects that brought together diverse threads of control. From this work emerged new theories and practices of feedback, control, and computing. As always, the continuous nature of these processes makes the choice of beginning and ending somewhat arbitrary. This narrative ends in 1945, when the Office of Scientific Research and Development (OSRD) closed down, and with the subsequent publication of Cybernetics , Claude Shannon’s “Mathematical Theory of Communications,” and the Massachusetts Institute of Technology (MIT) Radiation Laboratory series of textbooks on radar, electronics, and servomechanisms. These and other publications helped spread the results of the war’s massive research and development projects and laid foundations for a new era of communications, control, and computing. The first half of the book follows four discrete technological traditions, or engineering cultures, of control systems in the United States between the world wars, and the second part chronicles their convergence and transformation during World War II.

pages: 405 words: 117,219

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In Our Own Image: Savior or Destroyer? The History and Future of Artificial Intelligence
** by
George Zarkadakis

3D printing, Ada Lovelace, agricultural Revolution, Airbnb, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, animal electricity, anthropic principle, Asperger Syndrome, autonomous vehicles, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, British Empire, business process, carbon-based life, cellular automata, Claude Shannon: information theory, combinatorial explosion, complexity theory, continuous integration, Conway's Game of Life, cosmological principle, dark matter, dematerialisation, double helix, Douglas Hofstadter, Edward Snowden, epigenetics, Flash crash, Google Glasses, Gödel, Escher, Bach, income inequality, index card, industrial robot, Internet of things, invention of agriculture, invention of the steam engine, invisible hand, Isaac Newton, Jacquard loom, Jacques de Vaucanson, James Watt: steam engine, job automation, John von Neumann, Joseph-Marie Jacquard, Kickstarter, liberal capitalism, lifelogging, millennium bug, Moravec's paradox, natural language processing, Norbert Wiener, off grid, On the Economy of Machinery and Manufactures, packet switching, pattern recognition, Paul Erdős, post-industrial society, prediction markets, Ray Kurzweil, Rodney Brooks, Second Machine Age, self-driving car, Silicon Valley, social intelligence, speech recognition, stem cell, Stephen Hawking, Steven Pinker, strong AI, technological singularity, The Coming Technological Singularity, The Future of Employment, the scientific method, theory of mind, Turing complete, Turing machine, Turing test, Tyler Cowen: Great Stagnation, Vernor Vinge, Von Neumann architecture, Watson beat the top human players on Jeopardy!, Y2K

We have already met the first two. Norbert Wiener was the grand visionary of cybernetics. Inspired by mechanical control systems, such as artillery targeting and servomechanisms, as well as Claude Shannon’s mathematical theory of communication and information, he articulated the theory of cybernetics in his landmark book, Cybernetics, of 1948.4 Godfather number two, Claude Shannon, was the genius who gave us information theory. We saw how Wiener and Shannon pondered on the ontology of information, and how they decided to regard it as something beyond matter and energy. The legacy of their decision is still with us today, in the disembodiment of information that defines post-humanism. The man who demonstrated the direct connection between neurons and computers was Professor Warren S. McCulloch (1898–1969), the American neurophysiologist who loved writing sonnets and laid the foundations of many contemporary brain theories.

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In a strange twist of history, it appears that after the Second World War computer scientists and engineers dismissed Aristotelian empiricism and became Neoplatonists. Instead of adhering to the principle that universals are always predicated by physical objects they adopted the opposite, Platonic, idea. In Part III of this book, we will explore in more detail the technological reasons behind this conceptual shift. But before we do so, let us first examine the concept of information. The father of information theory is the American mathematician, electronic engineer and cryptographer Claude Shannon (1916–2001). He worked as a cryptanalyst in the Second World War, and in early 1943 he met Alan Turing, who had been posted to Washington to work with the Americans on breaking the German naval codes. Like his English counterpart, Shannon is one of the great heroes of computer science, a man whose work has shaped the world we live in. He was a rather playful person, too.

…

From the late nineteenth century till the late 1930s a number of other, seemingly irrelevant inventions were made that, with time, would define modern computing. Two of them were, arguably, the most significant. In 1876 Graham Bell discovered the telephone. And four years later, in 1879, Thomas Edison discovered the incandescent lamp.14 These two inventions would become fundamental in the birth and evolution of electronics and telecommunications. By the time Claude Shannon began to formulate his information theory, there was a pressing need for better telecommunications systems because of the ubiquity of the telephone. Meanwhile, Edison’s incandescent lamp had evolved into sophisticated vacuum tubes that acted as electronic amplifiers, rectifiers, switches and oscillators. Shannon was the genius who combined logic with electronics. In 1937, as a twenty-one-year-old student at the Massachusetts Institute of Technology (MIT), he demonstrated how Boole’s logic could be applied in electronic circuits to construct and resolve logical or numerical relationships.

pages: 209 words: 53,236

**
The Scandal of Money
** by
George Gilder

Affordable Care Act / Obamacare, bank run, Bernie Sanders, bitcoin, blockchain, borderless world, Bretton Woods, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, Claude Shannon: information theory, Clayton Christensen, cloud computing, corporate governance, cryptocurrency, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, Deng Xiaoping, disintermediation, Donald Trump, fiat currency, financial innovation, Fractional reserve banking, full employment, George Gilder, glass ceiling, Home mortgage interest deduction, index fund, indoor plumbing, industrial robot, inflation targeting, informal economy, Innovator's Dilemma, Internet of things, invisible hand, Isaac Newton, Jeff Bezos, John von Neumann, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, Law of Accelerating Returns, Marc Andreessen, Mark Zuckerberg, Menlo Park, Metcalfe’s law, money: store of value / unit of account / medium of exchange, mortgage tax deduction, obamacare, Paul Samuelson, Peter Thiel, Ponzi scheme, price stability, Productivity paradox, purchasing power parity, quantitative easing, quantitative trading / quantitative ﬁnance, Ray Kurzweil, reserve currency, road to serfdom, Robert Gordon, Robert Metcalfe, Ronald Reagan, Sand Hill Road, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, secular stagnation, seigniorage, Silicon Valley, smart grid, South China Sea, special drawing rights, The Great Moderation, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Tim Cook: Apple, time value of money, too big to fail, transaction costs, trickle-down economics, Turing machine, winner-take-all economy, yield curve, zero-sum game

Like the electromagnetic spectrum, which bears all the messages of the Internet to and from your smartphone or computer, it must be rooted in the absolute speed of light, the ultimate guarantor of the integrity of time. Dominating our own era and revealing in fundamental ways the nature of money is the information theory of Kurt Gödel, John von Neumann, Alan Turing, and Claude Shannon. Information theory tells us that information is not order but disorder, not the predictable regularity that contains no news, but the unexpected modulation, the surprising bits. But human creativity and surprise depend upon a matrix of regularities, from the laws of physics to the stability of money.4 Information theory has impelled the global ascendancy of information technology. From worldwide webs of glass and light to a boom in biotech based on treating life itself as chiefly an information system, a new system of the world is transforming our lives.

…

That’s not capitalism, that’s hypertrophy of finance. Information theory: Based on the mathematical theories of Claude Shannon and Alan Turing, an evolving discipline that depicts human creations and communications as transmissions across a channel, whether that channel is a wire or the world. Measuring the outcome is its “news” or surprise, defined as entropy and consummated as knowledge. Entropy is higher or lower depending on the freedom of choice of the sender. The larger the available alphabet of symbols—that is, the larger the set of possible messages—the greater the composer’s choice and the higher the entropy and information of the message. Since these creations and communications can be business plans or experiments, information theory provides the foundation for an economics driven not by equilibrium or order but by falsifiable entrepreneurial surprises.

…

The Stanford physicist and Nobel laureate Robert Laughlin has derided the elaborate efforts of scientists to find significance in the intrinsically transitory forms that arise on their computers during phase changes, such as bubbles in water on the brink of a boil.7 These computational figments have an analogue here in the outside traders’ search for momentary correlations. As Claude Shannon knew, in principle a creative pattern of data points—reflecting long and purposeful preparation and invention—is indistinguishable from a random pattern. Both are high entropy. Parsing of random patterns for transitory correlations fails to yield new knowledge. You cannot meaningfully study the ups and downs of the market with an oscilloscope. You need a microscope, exploring inside the cells of individual companies. Currency values should be stable. In information theory terms, they should function as low-entropy carriers for high-entropy creations. But the oceanic currency markets are full of Laughlin froth to be parsed by computers for short-term anomalies.

pages: 505 words: 142,118

**
A Man for All Markets
** by
Edward O. Thorp

3Com Palm IPO, Albert Einstein, asset allocation, beat the dealer, Bernie Madoff, Black Swan, Black-Scholes formula, Brownian motion, buy and hold, buy low sell high, carried interest, Chuck Templeton: OpenTable:, Claude Shannon: information theory, cognitive dissonance, collateralized debt obligation, Credit Default Swap, credit default swaps / collateralized debt obligations, diversification, Edward Thorp, Erdős number, Eugene Fama: efficient market hypothesis, financial innovation, George Santayana, German hyperinflation, Henri Poincaré, high net worth, High speed trading, index arbitrage, index fund, interest rate swap, invisible hand, Jarndyce and Jarndyce, Jeff Bezos, John Meriwether, John Nash: game theory, Kenneth Arrow, Livingstone, I presume, Long Term Capital Management, Louis Bachelier, margin call, Mason jar, merger arbitrage, Murray Gell-Mann, Myron Scholes, NetJets, Norbert Wiener, passive investing, Paul Erdős, Paul Samuelson, Pluto: dwarf planet, Ponzi scheme, price anchoring, publish or perish, quantitative trading / quantitative ﬁnance, race to the bottom, random walk, Renaissance Technologies, RFID, Richard Feynman, risk-adjusted returns, Robert Shiller, Robert Shiller, rolodex, Sharpe ratio, short selling, Silicon Valley, Stanford marshmallow experiment, statistical arbitrage, stem cell, stocks for the long run, survivorship bias, The Myth of the Rational Market, The Predators' Ball, the rule of 72, The Wisdom of Crowds, too big to fail, Upton Sinclair, value at risk, Vanguard fund, Vilfredo Pareto, Works Progress Administration

Before Ed Thorp, mathematicians of gambling had their love of chance largely unrequited. Thorp’s method is as follows: He cuts to the chase in identifying a clear edge (that is something that in the long run puts the odds in his favor). The edge has to be obvious and uncomplicated. For instance, calculating the momentum of a roulette wheel, which he did with the first wearable computer (and with no less a coconspirator than the great Claude Shannon, father of information theory), he estimated a typical edge of roughly 40 percent per bet. But that part is easy, very easy. It is capturing the edge, converting it into dollars in the bank, restaurant meals, interesting cruises, and Christmas gifts to friends and family—that’s the hard part. It is the dosage of your betting—not too little, not too much—that matters in the end. For that, Ed did great work on his own, before the theoretical refinement that came from a third member of the Information Trio: John Kelly, originator of the famous Kelly Criterion, a formula for placing bets that we discuss today because Ed Thorp made it operational.

…

To protect myself from this happening with my work on blackjack, I settled on Proceedings of the National Academy of Sciences, as it was the quickest to publish of any journal I knew, taking as little as two or three months, and was also very prestigious. This required a member of the academy to approve and forward my work, so I sought out the only mathematics member of the academy at MIT, Claude Shannon. Claude was famous for the creation of information theory, which is crucial for modern computing, communications, and much more. The department secretary arranged a short appointment with a reluctant Shannon at noon. However, she warned me that Shannon was going to be in for only a few minutes, that I shouldn’t expect more, and that he didn’t spend time on topics or people that didn’t interest him. A little in awe but feeling lucky, I arrived at Shannon’s office to find a thinnish alert man of middle height and build, somewhat sharp-featured.

…

During the long ride back I wondered how my research into the mathematical theory of a game might change my life. In the abstract, life is a mixture of chance and choice. Chance can be thought of as the cards you are dealt in life. Choice is how you play them. I chose to investigate blackjack. As a result, chance offered me a new set of unexpected opportunities. Ever since my first meeting with Claude Shannon in September, we had been working on the roulette project approximately twenty hours a week. Meanwhile, I was teaching courses, doing research in pure mathematics, attending department functions, writing up my blackjack research, and adjusting to being a new father. Following a roulette work session at the Shannons’, Claude asked me at dinner if I thought anything would ever top this in my life.

pages: 193 words: 19,478

**
Memory Machines: The Evolution of Hypertext
** by
Belinda Barnet

augmented reality, Benoit Mandelbrot, Bill Duvall, British Empire, Buckminster Fuller, Claude Shannon: information theory, collateralized debt obligation, computer age, conceptual framework, Douglas Engelbart, Douglas Engelbart, game design, hiring and firing, Howard Rheingold, HyperCard, hypertext link, information retrieval, Internet Archive, John Markoff, linked data, mandelbrot fractal, Marshall McLuhan, Menlo Park, nonsequential writing, Norbert Wiener, publish or perish, Robert Metcalfe, semantic web, Steve Jobs, Stewart Brand, technoutopianism, Ted Nelson, the scientific method, Vannevar Bush, wikimedia commons

It was an underpaid woman sitting there with a hand calculator, and they’d have rooms full of them, that’s how they got their computing done. So you’d say, ‘What’s your job?’ ‘I’m a computer.’ (Engelbart 1986) The Analyzer evaluated and solved these equations by mechanical integration. It automated a task that was previously done by human beings and created a small revolution at MIT. Many of the people who worked on the machine (for example Harold Hazen, Gordon Brown and Claude Shannon) later made contributions to feedback control, information theory and computing (Mindell 2000). The machine was a huge success that brought prestige and a flood of federal money to MIT and Bush. However, by the spring of 1950 the Analyzer was gathering dust in a storeroom; the project had died. Why did it fail? Why did the world’s most 14 Memory Machines important analogue computer end up obsolescing in a backroom? It is not uncommon for a successful engineering prototype to become obsolescent within twenty years.

…

Microfilm would provide ultra-fast input and inexpensive massmemory, photoelectricity would allow high-speed sensing and reproduction, and digital electronics would allow astonishingly fast and inexpensive control and calculation. (Burke 1991, 147) Bush transferred these three technologies to the new design. This decision was not pure genius on his part; they were perfect analogues for a popular conception of how the brain worked at the time. The scientific community at MIT were developing a pronounced interest in man-machine analogues, and although Claude Shannon had not yet published his information theory (Dutta 1995), it was already being formulated. Much discussion also took place around MIT about how the brain might process information in the manner of an analogue machine. Bush thought and designed in terms of analogies between brain and machine, electricity and information. He shared this central research agenda with Norbert Weiner and Warren McCulloch, both at MIT, who were at the time ‘working on parallels they saw between neural structure and process and computation’ (Nyce and Kahn 1991, 63; see also Hayles 1999).

…

In 1935 the US Navy came to Bush for advice on machines to crack coding devices like the new Japanese cipher machines (Burke 1991). They wanted a long-term project that would give the United States the most technically advanced cryptanalytic capabilities in the world, a superfast machine to count the coincidences of letters in two messages or copies of a single message. Bush assembled a research team for this project that included Claude Shannon, one of the early information theorists and a significant part of the emerging cybernetics community (Nyce and Kahn 1991). Three new technologies were emerging at the time that handled information: photoelectricity, microfilm and digital electronics. All three were just emerging, but, unlike the fragile magnetic recording [Bush’s] students were exploring, they appeared to be ready to use in calculation machines.

pages: 250 words: 73,574

**
Nine Algorithms That Changed the Future: The Ingenious Ideas That Drive Today's Computers
** by
John MacCormick,
Chris Bishop

Ada Lovelace, AltaVista, Claude Shannon: information theory, fault tolerance, information retrieval, Menlo Park, PageRank, pattern recognition, Richard Feynman, Silicon Valley, Simon Singh, sorting algorithm, speech recognition, Stephen Hawking, Steve Jobs, Steve Wozniak, traveling salesman, Turing machine, Turing test, Vannevar Bush

So it is not altogether surprising that the two major events triggering the creation of error-correcting codes both occurred in the research laboratories of the Bell Telephone Company. The two heroes of our story, Claude Shannon and Richard Hamming, were both researchers at Bell Labs. Hamming we have met already: it was his annoyance at the weekend crashes of a company computer that led directly to his invention of the first error-correcting codes, now known as Hamming codes. However, error-correcting codes are just one part of a larger discipline called information theory, and most computer scientists trace the birth of the field of information theory to a 1948 paper by Claude Shannon. This extraordinary paper, entitled “The Mathematical Theory of Communication,” is described in one biography of Shannon as “the Magna Carta of the information age.”

…

THE ORIGINS OF COMPRESSION ALGORITHMS The same-as-earlier trick described in this chapter—one of the main compression methods used in ZIP files—is known to computer scientists as the LZ77 algorithm. It was invented by two Israeli computer scientists, Abraham Lempel and Jacob Ziv, and published in 1977. To trace the origins of compression algorithms, however, we need to delve three decades further back into scientific history. We have already met Claude Shannon, the Bell Labs scientist who founded the field of information theory with his 1948 paper. Shannon was one of the two main heroes in our story of error-correcting codes (chapter 5), but he and his 1948 paper also figure importantly in the emergence of compression algorithms. This is no coincidence. In fact, error-correcting codes and compression algorithms are two sides of the same coin. It all comes down to the notion of redundancy, which featured quite heavily in chapter 5.

…

The quotation from Hamming on page 60 is also given in this book and derives from a 1977 interview of Hamming by Thompson. Mathematicians will greatly enjoy Thompson's delightful book, but it definitely assumes the reader has a healthy dose of college math. Dewdney's book (see above) has two interesting chapters on coding theory. The two quotations about Shannon on pages 77-78 are taken from a brief biography by N. J. A. Sloane and A. D. Wyner, appearing in Claude Shannon: Collected Papers edited by Sloane and Wyner (1993). Pattern recognition (chapter 6). Bishop's lectures (see above) have some interesting material that nicely complements this chapter. The geographical data about political donations is taken from the Fundrace project of the Huffington Post. All the handwritten digit data is taken from a dataset provided by Yann LeCun, of New York University's Courant Institute, and his collaborators.

pages: 720 words: 197,129

**
The Innovators: How a Group of Inventors, Hackers, Geniuses and Geeks Created the Digital Revolution
** by
Walter Isaacson

1960s counterculture, Ada Lovelace, AI winter, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, AltaVista, Apple II, augmented reality, back-to-the-land, beat the dealer, Bill Gates: Altair 8800, bitcoin, Bob Noyce, Buckminster Fuller, Byte Shop, c2.com, call centre, citizen journalism, Claude Shannon: information theory, Clayton Christensen, commoditize, computer age, crowdsourcing, cryptocurrency, Debian, desegregation, Donald Davies, Douglas Engelbart, Douglas Engelbart, Douglas Hofstadter, Dynabook, El Camino Real, Electric Kool-Aid Acid Test, en.wikipedia.org, Firefox, Google Glasses, Grace Hopper, Gödel, Escher, Bach, Hacker Ethic, Haight Ashbury, Howard Rheingold, Hush-A-Phone, HyperCard, hypertext link, index card, Internet Archive, Jacquard loom, Jaron Lanier, Jeff Bezos, jimmy wales, John Markoff, John von Neumann, Joseph-Marie Jacquard, Leonard Kleinrock, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Mitch Kapor, Mother of all demos, new economy, New Journalism, Norbert Wiener, Norman Macrae, packet switching, PageRank, Paul Terrell, pirate software, popular electronics, pre–internet, RAND corporation, Ray Kurzweil, RFC: Request For Comment, Richard Feynman, Richard Stallman, Robert Metcalfe, Rubik’s Cube, Sand Hill Road, Saturday Night Live, self-driving car, Silicon Valley, Silicon Valley startup, Skype, slashdot, speech recognition, Steve Ballmer, Steve Crocker, Steve Jobs, Steve Wozniak, Steven Levy, Steven Pinker, Stewart Brand, technological singularity, technoutopianism, Ted Nelson, The Coming Technological Singularity, The Nature of the Firm, The Wisdom of Crowds, Turing complete, Turing machine, Turing test, Vannevar Bush, Vernor Vinge, Von Neumann architecture, Watson beat the top human players on Jeopardy!, Whole Earth Catalog, Whole Earth Review, wikimedia commons, William Shockley: the traitorous eight

Turing’s ‘On computable numbers,’ ” Journal of Symbolic Logic, 1937. 13. This Shannon section draws on Jon Gertner, The Idea Factory: Bell Labs and the Great Age of American Innovation (Penguin, 2012; locations refer to the Kindle edition), chapter 7; M. Mitchell Waldrop, “Claude Shannon: Reluctant Father of the Digital Age,” MIT Technology Review, July 2001; Graham Collins, “Claude E. Shannon: Founder of Information Theory,” Scientific American, Oct. 2012; James Gleick, The Information (Pantheon, 2011), chapter 7. 14. Peter Galison, Image and Logic (University of Chicago, 1997), 781. 15. Claude Shannon, “A Symbolic Analysis of Relay and Switching Circuits,” Transactions of the American Institute of Electrical Engineers, Dec. 1938. For a clear explanation, see Daniel Hillis, The Pattern on the Stone (Perseus, 1998), 2–10. 16. Paul Ceruzzi, Reckoners: The Prehistory of the Digital Computer (Greenwood, 1983), 79.

…

This time his former assistant Thomas Watson, who was in San Francisco, replied, “It would take me a week.”1 Thus was the seed planted for a new industrial organization that became known as Bell Labs. Originally located on the western edge of Manhattan’s Greenwich Village overlooking the Hudson River, it brought together theoreticians, materials scientists, metallurgists, engineers, and even AT&T pole climbers. It was where George Stibitz developed a computer using electromagnetic relays and Claude Shannon worked on information theory. Like Xerox PARC and other corporate research satellites that followed, Bell Labs showed how sustained innovation could occur when people with a variety of talents were brought together, preferably in close physical proximity where they could have frequent meetings and serendipitous encounters. That was the upside. The downside was that these were big bureaucracies under corporate thumbs; Bell Labs, like Xerox PARC, showed the limits of industrial organizations when they don’t have passionate leaders and rebels who can turn innovations into great products.

…

Turing asked his mother to send out reprints of it to the mathematical philosopher Bertrand Russell and a half dozen other famous scholars, but the only major review was by Alonzo Church, who could afford to be flattering because he had been ahead of Turing in solving Hilbert’s decision problem. Church was not only generous; he introduced the term Turing machine for what Turing had called a Logical Computing Machine. Thus at twenty-four, Turing’s name became indelibly stamped on one of the most important concepts of the digital age.12 CLAUDE SHANNON AND GEORGE STIBITZ AT BELL LABS There was another seminal theoretical breakthrough in 1937, similar to Turing’s in that it was purely a thought experiment. This one was the work of an MIT graduate student named Claude Shannon, who that year turned in the most influential master’s thesis of all time, a paper that Scientific American later dubbed “the Magna Carta of the Information Age.”13 Shannon grew up in a small Michigan town where he built model planes and amateur radios, then went on to major in electrical engineering and math at the University of Michigan.

pages: 252 words: 74,167

**
Thinking Machines: The Inside Story of Artificial Intelligence and Our Race to Build the Future
** by
Luke Dormehl

Ada Lovelace, agricultural Revolution, AI winter, Albert Einstein, Alexey Pajitnov wrote Tetris, algorithmic trading, Amazon Mechanical Turk, Apple II, artificial general intelligence, Automated Insights, autonomous vehicles, book scanning, borderless world, call centre, cellular automata, Claude Shannon: information theory, cloud computing, computer vision, correlation does not imply causation, crowdsourcing, drone strike, Elon Musk, Flash crash, friendly AI, game design, global village, Google X / Alphabet X, hive mind, industrial robot, information retrieval, Internet of things, iterative process, Jaron Lanier, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kickstarter, Kodak vs Instagram, Law of Accelerating Returns, life extension, Loebner Prize, Marc Andreessen, Mark Zuckerberg, Menlo Park, natural language processing, Norbert Wiener, out of africa, PageRank, pattern recognition, Ray Kurzweil, recommendation engine, remote working, RFID, self-driving car, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, social intelligence, speech recognition, Stephen Hawking, Steve Jobs, Steve Wozniak, Steven Pinker, strong AI, superintelligent machines, technological singularity, The Coming Technological Singularity, The Future of Employment, Tim Cook: Apple, too big to fail, Turing machine, Turing test, Vernor Vinge, Watson beat the top human players on Jeopardy!

‘The memory capacity of the human brain is probably of the order of ten thousand million binary digits,’ he considered. ‘But most of this is probably used in remembering visual impressions, and other comparatively wasteful ways. One might reasonably hope to be able to make some real progress [towards Artificial Intelligence] with a few million digits [of computer memory].’ The third of AI’s forefathers was a man named Claude Shannon, known today as the father of ‘information theory’. Born in 1916 – making him the youngest of the three – Shannon’s big contribution to computing related to the way in which transistors work. Transistors are the billions of tiny switches that make up a computer. An algorithm is the sequence of instructions that tells a computer what to do by switching these transistors on and off. By having certain transistors switch on and off in response to other transistors, Shannon argued that computers were performing basic reasoning.

…

ENIAC, for instance, could perform an astonishing 20,000 multiplications per minute. Compared with the unreliable memory of humans, a machine capable of accessing thousands of items in the span of microseconds had a clear advantage. There are entire books written about the birth of modern computing, but three men stand out as laying the philosophical and technical groundwork for the field that became known as Artificial Intelligence: John von Neumann, Alan Turing and Claude Shannon. A native of Hungary, von Neumann was born in 1903 into a Jewish banking family in Budapest. In 1930, he arrived at Princeton University as a maths teacher and, by 1933, had established himself as one of six professors in the new Institute for Advanced Study in Princeton: a position he stayed in until the day he died. By any measure, von Neumann was an astonishing intellect. According to legend, he was able to divide eight-digit numbers in his head at the age of six.

…

In the summer of 1956 – when Elvis Presley was scandalising audiences with his hip gyrations, Marilyn Monroe married playwright Arthur Miller, and President Dwight Eisenhower authorised ‘In God we trust’ as the US national motto – AI’s first official conference took place. A rolling six-week workshop, bringing together the smartest academics from a broad range of disciplines, the event unfolded on the sprawling 269-acre estate of Dartmouth College in Hanover, New England. Along with Claude Shannon, two of the organisers were young men named John McCarthy and Marvin Minsky, both of whom became significant players in the growing field of Artificial Intelligence. ‘The study [of AI] is to proceed on the basis of the conjecture that every aspect of learning or any other feature of intelligence can be so precisely described that a machine can be made to simulate it,’ they wrote. ‘An attempt will be made to find how to make machines use language, form abstractions and concepts, solve the kinds of problems now reserved for humans, and improve themselves.’

**
The Dream Machine: J.C.R. Licklider and the Revolution That Made Computing Personal
** by
M. Mitchell Waldrop

Ada Lovelace, air freight, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, anti-communist, Apple II, battle of ideas, Berlin Wall, Bill Duvall, Bill Gates: Altair 8800, Byte Shop, Claude Shannon: information theory, computer age, conceptual framework, cuban missile crisis, Donald Davies, double helix, Douglas Engelbart, Douglas Engelbart, Dynabook, experimental subject, fault tolerance, Frederick Winslow Taylor, friendly fire, From Mathematics to the Technologies of Life and Death, Haight Ashbury, Howard Rheingold, information retrieval, invisible hand, Isaac Newton, James Watt: steam engine, Jeff Rulifson, John von Neumann, Leonard Kleinrock, Marc Andreessen, Menlo Park, New Journalism, Norbert Wiener, packet switching, pink-collar, popular electronics, RAND corporation, RFC: Request For Comment, Robert Metcalfe, Silicon Valley, Steve Crocker, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, Ted Nelson, Turing machine, Turing test, Vannevar Bush, Von Neumann architecture, Wiener process, zero-sum game

And on June 30, Bell Labs announced a strange new amplifying device based on the cutting-edge physics of crystals and quantum mechanics-something called a transistor. And yet even in the midst of all that, Claude Shannon's long-delayed opus on information theory exploded like a bomb. His analysis of communication was breathtaking in scope, masterful in execution-and, for most people, totally unexpected. "It was like a bolt out of the blue, a really unique thing," recalls his Bell Labs colleague John Pierce. "I don't know of any other theory that came in a complete form like that, with very few antecedents or history." "It was a revelation," agrees Oliver Selfridge. "Around MIT the reaction was 'Brilliant! Why didn't I think of that?' Information theory gave us a whole con- ceptual vocabulary, as well as a technical vocabulary." Indeed, there was something about this notion of quantifying information that fired the imagination, much as the notion of quantifying "chaos" would do in the 1980s.

…

And on almost every page he used yet another psychological term: "information." NEW KINDS OF PEOPLE 75 Miller kept on reading. And by the time he was finished, he now says, he knew that his life had changed. THE CONJURER Legend has it that Claude Shannon published "A Mathematical Theory of Com- munication" in 1948 only because his boss at Bell Labs finally badgered him into it. And whatever the truth of that story, the point is that no one who knew Shannon has any trouble believing it. "He wrote beautiful papers-when he wrote," says Robert Fano, who became a leader of MIT's information-theory group in the 1950s and still has a reveren- tial photograph of Shannon hanging in his office. "And he gave beautiful talks- when he gave a talk. But he hated to do it." It wasn't a matter of Shannon's being lazy, Fano says; he was constantly fill- ing up notebooks with ideas, theorems, and calculations.

…

Miller's own work on chunking had already shown him that the mind organized concepts into a hierarchy. "But Chomsky's model seemed to make that idea much more general," he says. Indeed, his meet- ing with Chomsky was as pivotal as the moment eight years earlier when he'd picked up that July 1948 issue of the Bell Systems Technical Journal containing Claude Shannon's article-and all the more so because Chomsky's message was to be strongly reinforced just a short time later. Miller remembers the day very clearly: Tuesday, September 11, 1956, the second day of the second international conference on information theory. Actually, the whole conference was good. Held in MIT's Sloan Building, right on the river- front, it included talks by Jerry Wiesner, Bob Fano, Peter Elias, Oliver Selfridge, Walter Rosenblith, and even Shannon himself. But that second day was what THE FREEDOM TO MAKE MISTAKES 133 Miller had really been looking forward to.

pages: 210 words: 62,771

**
Turing's Vision: The Birth of Computer Science
** by
Chris Bernhardt

Ada Lovelace, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, Andrew Wiles, British Empire, cellular automata, Claude Shannon: information theory, complexity theory, Conway's Game of Life, discrete time, Douglas Hofstadter, Georg Cantor, Gödel, Escher, Bach, Henri Poincaré, Internet Archive, Jacquard loom, John Conway, John von Neumann, Joseph-Marie Jacquard, Norbert Wiener, Paul Erdős, Turing complete, Turing machine, Turing test, Von Neumann architecture

As Robert Soare has commented, you can think of your laptop being a Turing machine and the oracle as being the web. After Turing completed his Ph.D., von Neumann offered him a position as his assistant, but Turing decided not to accept and instead returned to England. During the time that Turing was working on his Ph.D. another breakthrough paper was written. This was on logic and switching circuits and was written by Claude Shannon. Claude Shannon In 1936, Claude Shannon graduated from the University of Michigan with two undergraduate degrees; one in electrical engineering and one in mathematics. He then went to M.I.T. for graduate school. At M.I.T. he worked on an early analog computer. This work led him to consider switches and digital computing. Switches have the property that they are either on or off. It is clear that they can represent 0 or 1, but Shannon showed they could do much more; that all of Boolean algebra and binary arithmetic could be done using electrical circuits and switches.

…

This idea, along with ideas from group theory and probability theory enabled him, like Rejewski, to design a machine containing multiple copies of Enigmas wired together in such a way that they performed the search through a restricted set of possibilities. His first bombe was operational in the spring of 1940.7 In 1942, after the United States joined the war, Turing went to America to work with cryptologists there, helping with the design of American bombes. While in America, he visited Bell Labs, which was then in lower Manhattan, where he met Claude Shannon. In addition to working on cryptology, they discussed their work on computing.8 At the end of the war there were a large number of bombes working in both the US and England. Being able to read Germany’s messages enabled the allies to locate German U-boats and the routes of ships. It helped with the choice of when and where to attack. Turing and Rejewski had not only played an important part in winning the war, but had ushered cryptology into a new age.

…

Why the Poles called their machine bomba (which translates as bomb in English) seems to be a mystery. Rejewsksi, when asked about this, is said to have replied that he couldn’t think of a better name. 8. Both Shannon and Turing were interested in using ideas from probability to extract information from data. Shannon would later extend some of his wartime work and write the groundbreaking paper “A Mathematical Theory of Communication” that is one of the foundations of Information Theory. Turing wrote several articles on the application of probability to cryptography. These were classified and only now are being made available to the public (two papers were declassified in 2012. They are available at http://www.nationalarchives.gov.uk). 9. The English use the term valve where the Americans use vacuum tube. 10. The National Museum of Computing in Bletchley Park has reconstructed a Colossus.

pages: 518 words: 107,836

**
How Not to Network a Nation: The Uneasy History of the Soviet Internet (Information Policy)
** by
Benjamin Peters

Albert Einstein, American ideology, Andrei Shleifer, Benoit Mandelbrot, bitcoin, Brownian motion, Claude Shannon: information theory, cloud computing, cognitive dissonance, computer age, conceptual framework, continuation of politics by other means, crony capitalism, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, David Graeber, Dissolution of the Soviet Union, Donald Davies, double helix, Drosophila, Francis Fukuyama: the end of history, From Mathematics to the Technologies of Life and Death, hive mind, index card, informal economy, information asymmetry, invisible hand, Jacquard loom, John von Neumann, Kevin Kelly, knowledge economy, knowledge worker, linear programming, mandelbrot fractal, Marshall McLuhan, means of production, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Network effects, Norbert Wiener, packet switching, Pareto efficiency, pattern recognition, Paul Erdős, Peter Thiel, Philip Mirowski, RAND corporation, rent-seeking, road to serfdom, Ronald Coase, scientific mainstream, Steve Jobs, Stewart Brand, stochastic process, technoutopianism, The Structural Transformation of the Public Sphere, transaction costs, Turing machine

These include Claude Lévi-Strauss’s treatment of language as a technologically ordered series (after meeting with Macy Conference attendee Roman Jakobson in Paris in 1950); Jacques Lacan’s turning to mathematical concepts; Roland Barthes’s turn to schematic accounts of communication; Gilles Deleuze’s abandonment of meaning, with Claude Shannon’s information theory in hand; Felix Guattari’s, Michel Foucault’s, and other French theorists’ experimentation with terms such as encoding, decoding, information, and communication.34 Postmodern French theory owes a deep debt to postwar information theory and the cybernetic sciences. In England, cybernetics took on a different character in the form of the Ratio Club, a small but potent gathering of British cybernetic figures who gathered regularly in the basement of the National Hospital for Nervous Diseases in London from 1949 through 1955.

…

Gerovitch details the translation of their terms: “What Wiener called ‘the feedback mechanism’ they called ‘the theory of feedback’ … ‘basic principles of digital computing’ became ‘the theory of automatic high-speed electronic calculating machines’; ‘cybernetic models of human thinking’ became the ‘theory of self-organizing logical processes.’”70 In fact, the coauthors used the word theory six times in their definition of cybernetics to emphasize the theoretical nature of the new science, possibly as a way to avoid having to discuss the political implications of introducing a practical field of human-machine applications into a society well suited to adopt them. The coauthors also integrated and expanded the stochastic analysis of Claude Shannon’s information theory while simultaneously stripping Wiener’s organism-machine analogy of its political potency.71 Wiener’s core analogies between animal and machine, machine and mind were stressed as analogies—or how “self-organizing logical processes [appeared] similar to the processes of human thought” but were not synonyms. At the same time, the article scripts his language of control, feedback, and automated systems in the machine and organism into the common language of information, or Shannon’s mathematical theory of communication.

…

The Macy Conferences, as they were informally known, staked out a spacious interdisciplinary purview for cybernetic research.11 In addition to McCulloch, who directed the conferences, a few noted participants included Wiener himself, the mathematician and game theorist John von Neumann, leading anthropologist Margaret Mead and her then husband Gregory Bateson, founding information theorist and engineer Claude Shannon, sociologist-statistician and communication theorist Paul Lazarsfeld, psychologist and computer scientist J.C.R. Licklider, as well as influential psychiatrists, psychoanalysts, and philosophers such as Kurt Lewin, F.S.C. Northrop, Molly Harrower, and Lawrence Kubie, among others. Relying on mathematical and formal definitions of communication, participants rendered permeable the boundaries that distinguished humans, machines, and animals as information systems.

pages: 267 words: 71,941

**
How to Predict the Unpredictable
** by
William Poundstone

accounting loophole / creative accounting, Albert Einstein, Bernie Madoff, Brownian motion, business cycle, butter production in bangladesh, buy and hold, buy low sell high, call centre, centre right, Claude Shannon: information theory, computer age, crowdsourcing, Daniel Kahneman / Amos Tversky, Edward Thorp, Firefox, fixed income, forensic accounting, high net worth, index card, index fund, John von Neumann, market bubble, money market fund, pattern recognition, Paul Samuelson, Ponzi scheme, prediction markets, random walk, Richard Thaler, risk-adjusted returns, Robert Shiller, Robert Shiller, Rubik’s Cube, statistical model, Steven Pinker, transaction costs

As one colleague noted, “No scientist or engineer will fail to recognize the well-known syndrome of an experiment that refuses to work in the face of upper management.” At a place like Bell Labs in the 1950s, brilliant people were always firing off sparks of genius. John Pierce had a special job — catching the best ideas in a basket and pressing their originators to follow them up. A Caltech-educated engineer, Pierce juggled the roles of instigator, motivational speaker, and life coach. His hardest case may have been Claude Shannon. It was a running joke: “You should do something on that,” Pierce would say to Shannon. “Should?” Shannon would reply. “What does ‘should’ mean?” Shannon, in his late thirties, had wavy hair and handsome, rather angular features. At Bell Labs he came in when he pleased and left when he pleased. He was welcome to do that because he had published work of such phenomenal value to AT&T that it would have been petty for anyone to complain.

…

The deeper issue is that even prudent users favor the same patterns of obfuscation (such as adding “123” onto the end, alternating capitals and lowercase letters, and other schemes only a bit more clever). This cuts the exponentially vast range of potential options down to manageable size. Password-cracking software does what Goodfellow did, only billions of times faster. * * * For a time, AT&T’s vision of a wireless future did not rule out telepathy. Thornton Fry, head of Bell Labs’ mathematics division and the man who hired Claude Shannon, was in that diehard minority of scientists who believed that J. B. Rhine might be onto something. About 1948, Bell Labs built an ESP machine. It was a device for generating random sequences that a would-be psychic would attempt to guess. By taking the place of Zener cards, the machine could exclude the possibility of cheating or unconscious signaling that had dogged Rhine’s research. Rhine himself saw the machine on a visit to Bell Labs and fell in love with it.

…

It silently churns data to guess locations of meth labs and carjackings; to put a price tag on the value of customers, employees, and managers; and, above all, to predict who will buy what and pay how much. Big Data makes the most of its ninja invisibility. The consumer rarely suspects how many of his actions have been tracked and outguessed. The predictions are not perfect (yet). And just as Claude Shannon could outguess his own prediction machine, you can outguess Big Data. This chapter will describe a few of the more widely applicable tricks. You’ve probably got weird calls from your mobile phone carrier, power company, or health club. The caller will ask if there’s anything she can do to serve you better. She’s not being neighborly. The call means that an algorithm has predicted that you’re likely to “churn” (cancel your service).

**
The Deep Learning Revolution (The MIT Press)
** by
Terrence J. Sejnowski

AI winter, Albert Einstein, algorithmic trading, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, bioinformatics, cellular automata, Claude Shannon: information theory, cloud computing, complexity theory, computer vision, conceptual framework, constrained optimization, Conway's Game of Life, correlation does not imply causation, crowdsourcing, Danny Hillis, delayed gratification, discovery of DNA, Donald Trump, Douglas Engelbart, Drosophila, Elon Musk, en.wikipedia.org, epigenetics, Flynn Effect, Frank Gehry, future of work, Google Glasses, Google X / Alphabet X, Guggenheim Bilbao, Gödel, Escher, Bach, haute couture, Henri Poincaré, I think there is a world market for maybe five computers, industrial robot, informal economy, Internet of things, Isaac Newton, John Conway, John Markoff, John von Neumann, Mark Zuckerberg, Minecraft, natural language processing, Netflix Prize, Norbert Wiener, orbital mechanics / astrodynamics, PageRank, pattern recognition, prediction markets, randomized controlled trial, recommendation engine, Renaissance Technologies, Rodney Brooks, self-driving car, Silicon Valley, Silicon Valley startup, Socratic dialogue, speech recognition, statistical model, Stephen Hawking, theory of mind, Thomas Bayes, Thomas Kuhn: the structure of scientific revolutions, traveling salesman, Turing machine, Von Neumann architecture, Watson beat the top human players on Jeopardy!, X Prize, Yogi Berra

As the world shifts from an industrial to an information economy, education and job training will have to adapt. This already is having a profound impact on the world. Information Theory In 1948, Claude Shannon (figure 15.1) at the AT&T Bell Laboratories in Murray Hill, New Jersey, proposed a remarkably simple but subtle theory for information to understand signal transmission through noisy phone lines.1 Shannon’s theory drove the digital communications revolution that gave rise to cell phones, digital television, and the Internet. When you make a cell phone call, your voice is encoded into bits and transmitted over radio waves and digital transmission lines to a receiver, where the digital signals are decoded and converted to sounds. Information theory puts bounds on the capacity of the communications channel (figure 15.2), and codes have been devised that approach the Shannon limit.

…

The unit of information is a “binary bit,” which can take on a value of 1 or 0. A “byte” is eight bits. 220 Chapter 15 Figure 15.1 Claude Shannon around 1963 in front of a telephone switching network. He worked at AT&T Bell Laboratories when he invented information theory. From Alfred Eisenstaedt/The LIFE Picture Collection/Getty Images. The information content of a high-quality photo is measured in megabytes, or millions of bytes. The amount of information stored in your cell phone is measured in gigabytes, or billions of bytes. Data on the Internet are measured in petabytes, or quadrillions (millions of billions) of bytes. Number Theory At its annual international symposium, the IEEE Information Theory Society (ITS) confers the Claude E. Shannon Award, a high honor, in recognition of distinguished research in the field.

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One difference, though, is that the impact of the exuberant periods has been increasing with each recurrence. The latest growth spurt has been fueled by the widespread availability of big data, and the story of NIPS has been one of preparing for this day to come. III Technological and Scientific Impact Timeline 1971—Noam Chomsky publishes “The Case against B. F. Skinner” in the New York Review of Books, an essay that steered a generation of cognitive scientists away from learning. 1982—Claude Shannon publishes the seminal book A Mathematical Theory of Communication, which laid the foundation for modern digital communication. 1989—Carver Mead publishes Analog VLSI and Neural Systems, founding the field of neuromorphic engineering, which builds computer chips inspired by biology. 2002—Stephen Wolfram publishes A New Kind of Science, which explored the computational capabilities of cellular automata, algorithms that are even simpler than neural networks but still capable of powerful computing. 2005—Sebastian Thrun’s team wins the DARPA Grand Challenge for an autonomous vehicle. 2008—Tobias Delbrück develops a highly successful spiking retina chip called the “Dynamic Vision Sensor” (DVS) that uses asynchronous spikes rather than synchronous frames used in current digital cameras. 2013—U.S.

pages: 608 words: 150,324

**
Life's Greatest Secret: The Race to Crack the Genetic Code
** by
Matthew Cobb

a long time ago in a galaxy far, far away, anti-communist, Asilomar, Asilomar Conference on Recombinant DNA, Benoit Mandelbrot, Berlin Wall, bioinformatics, Claude Shannon: information theory, conceptual framework, Copley Medal, dark matter, discovery of DNA, double helix, Drosophila, epigenetics, factory automation, From Mathematics to the Technologies of Life and Death, James Watt: steam engine, John von Neumann, Kickstarter, New Journalism, Norbert Wiener, phenotype, post-materialism, Stephen Hawking

Dubarle praised Wiener’s ‘extraordinary’ book, which he claimed announced the birth of ‘a new science’.13 The world was being reshaped, but Wiener remained bemused by the success: Freymann had not rated the commercial prospects of Cybernetics very highly – nor, as a matter of fact, had anybody on either side of the ocean. When it became a scientific best-seller we were all astonished, not least myself.14 * Wiener was not the sole creator of this revolution in thinking, nor did he claim to be. In the Introduction to Cybernetics, he described how this new vision of control had been developed through years of discussions with his intellectual partners, including Claude Shannon. Wiener generously explained that something like his ‘statistical theory of the amount of information’ had been simultaneously arrived at by Shannon in the US, by R. A. Fisher in the UK and by Andrei Kolmogoroff in the USSR. Fisher’s approach to information was in fact quite different, and the works of Kolmogoroff were unobtainable, but Shannon’s views were virtually identical to Wiener’s, as readers with the necessary mathematical ability were soon able to appreciate.

…

One of the ways in which these ideas came to influence biologists was through the promise of creating automata and thereby testing models of how organisms function and reproduce.20 These links were explored at a symposium on Cerebral Mechanisms in Behavior that was held at the California Institute of Technology (Caltech) a month before the publication of Cybernetics, at the end of September 1948. The symposium was a small affair – only fourteen speakers, with a further five participants, one of whom was the Caltech chemist Linus Pauling. 1. Claude Shannon’s model of communication. From Shannon and Weaver (1949). Von Neumann gave the opening talk, entitled ‘General and logical theory of automata’, and explored one of the defining features of life: its ability to reproduce. Von Neumann’s starting point was Alan Turing’s prewar theory of a universal machine that carried out its operations by reading and writing on a paper tape. But this was too simple for von Neumann: he wanted to imagine ‘an automaton whose output is other automata’.

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[English translation at http://www-sul.stanford.edu/siliconbase/wip/control.html.] Roch, A., ‘Biopolitics and intuitive algebra in the mathematization of cryptology? A review of Shannon’s ‘A mathematical theory of cryptography’ from 1945’, Cryptologia, vol. 23, 1999, pp. 261–6. Roche, J., ‘Notice nécrologique: André Boivin (1895–1949)’, Bulletin de la Société de Chimie Biologique, vol. 31, 1949, pp. 1564–7. Rogers, E. M., ‘Claude Shannon’s cryptography research during World War II and the mathematical theory of communication’, Proceedings, IEEE 28th International Carnaham Conference on Security Technology, 1994, pp. 1–5. Rogozin, I. B., Carmel, L., Csuros, M. and Koonin, E. V., ‘Origin and evolution of spliceosomal introns’, Biology Direct, vol. 7, 2012, p. 11. Romiguier, J., Ranwez, V., Douzery, E. J. P. and Galtier, N., ‘Contrasting GC-content dynamics across 33 mammalian genomes: Relationship with life-history traits and chromosome sizes’, Genome Research, vol. 20, 2010, pp. 1001–9.

pages: 463 words: 118,936

**
Darwin Among the Machines
** by
George Dyson

Ada Lovelace, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, anti-communist, British Empire, carbon-based life, cellular automata, Claude Shannon: information theory, combinatorial explosion, computer age, Danny Hillis, Donald Davies, fault tolerance, Fellow of the Royal Society, finite state, IFF: identification friend or foe, invention of the telescope, invisible hand, Isaac Newton, Jacquard loom, James Watt: steam engine, John Nash: game theory, John von Neumann, low earth orbit, Menlo Park, Nash equilibrium, Norbert Wiener, On the Economy of Machinery and Manufactures, packet switching, pattern recognition, phenotype, RAND corporation, Richard Feynman, spectrum auction, strong AI, the scientific method, The Wealth of Nations by Adam Smith, Turing machine, Von Neumann architecture, zero-sum game

By repeated sorting and other iterated functions, primitive punched-card machines could perform complex operations, but, like the original Turing machine, they had only a small number of possible states. The fundamental unit of information was the bit; its explicit definition as the contraction of “binary digit” was first noted in an internal Bell Laboratories memo written by John W. Tukey on 9 January 1947,20 and first published in Claude Shannon’s Mathematical Theory of Communication in 1948.21 Shannon’s definition was foreshadowed by Vannevar Bush’s analysis, in 1936, of the number of “bits of information” that could be stored on a punched card. In those days bits were assigned only fleetingly to electrical or electronic form. Most bits, most of the time, were bits of paper (or bits of missing paper, represented by the chad that was carted off to landfills by the ton).

…

The trustees did not want to lose von Neumann to another institution, so they gave him the go-ahead. In November 1945, a committee led by von Neumann and including Herman Goldstine (still attached to the ENIAC project at the Moore School) held its first meeting in Vladimir Zworykin’s office at RCA. Also in attendance was John Tukey, a statistician with Bell Telephone Laboratories (and the originator of information theorist Claude Shannon’s landmark contraction of “binary digit” to “bit”). Von Neumann issued a memorandum of objectives, concluding that “it is to be expected that the future evolution of high-speed computing will be decisively influenced by the experiences gained.”22 By the spring of 1946 the project was under way and staff, led by Goldstine, were signing on. Goldstine, Arthur Burks, and von Neumann set to work developing the logical plan of the computer, released in June 1946 as Preliminary Discussion of the Logical Design of an Electronic Computing Instrument, revised in September 1947, and followed by a three-volume report, Planning and Coding of Problems for an Electronic Computing Instrument (1947–1948).

…

Most early digital computers—from the Colossus to the IAS machine—used paper-tape teletype equipment for input and output between the computer and the outside world, augmented by the ubiquitous punched-card equipment from Hollerith and IBM. It was only natural that the first computers incorporated high-speed telegraphic equipment, and it is no accident that the genesis of the Colossus within the British Telecommunications Research Establishment was mirrored in the United States by early steps taken toward computers by Claude Shannon and others within Bell Laboratories and RCA. Only later did the communications industry and the computer industry become temporarily estranged. The solitary computers of the early 1950s exchanged code sequences by means of mutually intelligible storage media and, before the end of the decade, by connecting directly or, in language that has now been extended to human beings, on-line. But no matter what the medium of exchange, the code itself and the protocols that regulate its flow remain directly descended from the first strings of telegraphic bits.

pages: 561 words: 120,899

**
The Theory That Would Not Die: How Bayes' Rule Cracked the Enigma Code, Hunted Down Russian Submarines, and Emerged Triumphant From Two Centuries of Controversy
** by
Sharon Bertsch McGrayne

Bayesian statistics, bioinformatics, British Empire, Claude Shannon: information theory, Daniel Kahneman / Amos Tversky, double helix, Edmond Halley, Fellow of the Royal Society, full text search, Henri Poincaré, Isaac Newton, Johannes Kepler, John Markoff, John Nash: game theory, John von Neumann, linear programming, longitudinal study, meta analysis, meta-analysis, Nate Silver, p-value, Pierre-Simon Laplace, placebo effect, prediction markets, RAND corporation, recommendation engine, Renaissance Technologies, Richard Feynman, Richard Feynman: Challenger O-ring, Robert Mercer, Ronald Reagan, speech recognition, statistical model, stochastic process, Thomas Bayes, Thomas Kuhn: the structure of scientific revolutions, traveling salesman, Turing machine, Turing test, uranium enrichment, Yom Kippur War

While Bayes has helped revolutionize modern life on the web, it is also helping to finesse the Tower of Babel that has separated linguistic communities for millennia. During the Second World War, Warren Weaver of the Rockefeller Foundation was impressed with how “a multiplicity of languages impedes cultural interchange between the peoples of the earth and is a serious deterrent to international understanding.”6 Struck by the power of mechanized cryptography and by Claude Shannon’s new information theory, Weaver suggested that computerized statistical methods could treat translation as a cryptography problem. In the absence of computer power and a wealth of machine-readable text, Weaver’s idea lay fallow for decades. Ever since, the holy grail of translators has been a universal machine that can transform written and spoken words from one language into any other. As part of this endeavor, linguists like Noam Chomsky developed structural rules for English sentences, subjects, verbs, adjectives, and grammar but failed to produce an algorithm that could explain why one string of words makes an English sentence while another string does not.

…

Yet at the very same time practical problem solvers relied on it to deal with real-world emergencies. One spectacular success occurred during the Second World War, when Alan Turing developed Bayes to break Enigma, the German navy’s secret code, and in the process helped to both save Britain and invent modern electronic computers and software. Other leading mathematical thinkers—Andrei Kolmogorov in Russia and Claude Shannon in New York—also rethought Bayes for wartime decision making. During the years when ivory tower theorists thought they had rendered Bayes taboo, it helped start workers’ compensation insurance in the United States; save the Bell Telephone system from the financial panic of 1907; deliver Alfred Dreyfus from a French prison; direct Allied artillery fire and locate German U-boats; and locate earthquake epicenters and deduce (erroneously) that Earth’s core consists of molten iron.

…

In a fundamental breakthrough, Turing realized he could not systematize his hunches or compare their probabilities without a unit of measurement. He named his unit a ban for Banburismus and defined it as “about the smallest change in weight of evidence that is directly perceptible to human intuition.”13 One ban represented odds of 10 to 1 in favor of a guess, but Turing normally dealt with much smaller quantities, decibans and even centibans. The ban was basically the same as the bit, the measure of information Claude Shannon discovered by using Bayes’ rule at roughly the same time at Bell Telephone Laboratories. Turing’s measure of belief, the ban, and its supporting mathematical framework have been called his greatest intellectual contribution to Britain’s defense. To estimate the probability of a guess when information was arriving piecemeal, Turing used bans to discriminate between sequential hypotheses. He was thus one of the first to develop what came to be called sequential analysis.

**
Crypto: How the Code Rebels Beat the Government Saving Privacy in the Digital Age
** by
Steven Levy

Albert Einstein, Claude Shannon: information theory, cognitive dissonance, computer age, Donald Knuth, Eratosthenes, Extropian, invention of the telegraph, John Markoff, Kevin Kelly, knapsack problem, Marc Andreessen, Mitch Kapor, MITM: man-in-the-middle, Network effects, new economy, NP-complete, Ronald Reagan, Saturday Night Live, Silicon Valley, Simon Singh, Stephen Hawking, Steven Levy, Watson beat the top human players on Jeopardy!, web of trust, Whole Earth Catalog, zero-sum game, Zimmermann PGP, éminence grise

One day at the Cambridge Public Library, Diffie was browsing the recent acquisitions and came across The Broken Seal by Ladislas Farago, a book about the pre–Pearl Harbor codebreaking efforts. He read a bit of it right there, and he certainly thought it worth reading further. But he never did. (Worse, he came to confuse this book with another book published at that time, David Kahn’s The Codebreakers, which delayed his reading of the more important work.) Similarly, one day at Mitre, a colleague moving out of his office gave Diffie a 1949 paper by Claude Shannon. The legendary father of information theory had been teaching at MIT since 1956, but Diffie had never met him, a slight, introverted professor who lived a quiet family life, pursuing a variety of interests from reading science fiction to listening to jazz. (Presumably, by the time Shannon had reached his sixties, he had put aside the unicycle he had once mastered.) Shannon’s impact on cryptography was considerable.

…

Imagine if some techno-crook managed to elbow his way on to the phone line and mimic the messages that said, “Lay on the twenties!” The answer was cryptography. Though Tuchman had a background in information theory, he had never specifically done any crypto work. But he soon found out about the system that the guys in IBM research at Yorktown Heights had cooked up. He ventured down to Watson Labs one day and heard Feistel speak about Lucifer. He immediately set up a lunch with Feistel and Alan Konheim. The first thing Tuchman asked Feistel was where he had gotten the ideas for Lucifer. Feistel, in his distinctive German accent, mentioned the early papers of Claude Shannon. “The Shannon paper reveals all,” he said. Meanwhile, Tuchman’s colleague Karl Meyer was exploring whether Lucifer might be a good fit for an expanded version of the Lloyd’s Cashpoint system.

…

Though Hellman didn’t work directly with Horst Feistel, the German-born cryptographer worked nearby in the building, and sometimes the two of them would sit together at lunch, where the older man would describe some of the classical cryptosystems and some of the means of breaking them. Hellman left IBM in 1970, accepting a post as assistant professor at MIT. At that time Peter Elias, who had worked closely with Claude Shannon, was just stepping down as the head of the electronic engineering department. Elias’s talks with Hellman drew the young academic deeper into crypto, and for the first time he began thinking about making it the focus of his research. “Partially, it was the magician aspect, being able to impress people with magic tricks,” he now explains. “Also, the potential to make a real impact, and advance my career by doing it.”

pages: 242 words: 68,019

**
Why Information Grows: The Evolution of Order, From Atoms to Economies
** by
Cesar Hidalgo

"Robert Solow", Ada Lovelace, Albert Einstein, Arthur Eddington, assortative mating, business cycle, Claude Shannon: information theory, David Ricardo: comparative advantage, Douglas Hofstadter, Everything should be made as simple as possible, frictionless, frictionless market, George Akerlof, Gödel, Escher, Bach, income inequality, income per capita, industrial cluster, information asymmetry, invention of the telegraph, invisible hand, Isaac Newton, James Watt: steam engine, Jane Jacobs, job satisfaction, John von Neumann, Joi Ito, New Economic Geography, Norbert Wiener, p-value, Paul Samuelson, phenotype, price mechanism, Richard Florida, Ronald Coase, Rubik’s Cube, Silicon Valley, Simon Kuznets, Skype, statistical model, Steve Jobs, Steve Wozniak, Steven Pinker, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, total factor productivity, transaction costs, working-age population

It is physical order, like what distinguishes different shuffles of a deck of cards. What is surprising to most people, however, is that information is meaningless, even though the meaningless nature of information, much like its physicality, is often misunderstood. In 1949 Claude Shannon and Warren Weaver published a short book entitled The Mathematical Theory of Communication. In its first section, Weaver described the conceptual aspects of information. In the second section, Shannon described the mathematics of what we now know as information theory. For information theory to be properly understood, Shannon and Weaver needed to detach the word information from its colloquial meaning. Weaver made this distinction early on his essay: “The word information, in this theory, is used in a special sense that must not be confused with its ordinary usage.

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As the parts that made the Bugatti were pulled apart and twisted, the information that was embodied in the Bugatti was largely destroyed. This is another way of saying that the $2.5 million worth of value was stored not in the car’s atoms but in the way those atoms were arranged.3 That arrangement is information.4 So the value of the Bugatti is connected to physical order, which is information, even though people still debate what information is.5 According to Claude Shannon, the father of information theory, information is a measure of the minimum volume of communication required to uniquely specify a message. That is, it’s the number of bits we need to communicate an arrangement, like the arrangement of atoms that made the Bugatti. To grasp Shannon’s definition of information firmly, however, it is better to start with something simpler than a Bugatti. Here I will use a tweet.

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Encoding and decoding messages was a mathematical problem that was too interesting to be abandoned as the war dwindled. Mathematicians continued to formalize the idea of information, but they framed their efforts in the context of communication technologies, transcending the efforts to decipher intercepted messages. The mathematicians who triumphed became known as the world’s first information theorists or cyberneticists. These pioneers included Claude Shannon, Warren Weaver, Alan Turing, and Norbert Wiener. In the 1950s and 1960s the idea of information took science by storm. Information was welcomed in all academic fields as a powerful concept that cut across scientific boundaries. Information was neither microscopic nor macroscopic.3 It could be inscribed sparsely on clay tablets or packed densely in a strand of DNA. For many practical purposes, the scale at which information was embodied was not crucial.

pages: 322 words: 88,197

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Wonderland: How Play Made the Modern World
** by
Steven Johnson

Ada Lovelace, Alfred Russel Wallace, Antoine Gombaud: Chevalier de Méré, Berlin Wall, bitcoin, Book of Ingenious Devices, Buckminster Fuller, Claude Shannon: information theory, Clayton Christensen, colonial exploitation, computer age, conceptual framework, crowdsourcing, cuban missile crisis, Drosophila, Edward Thorp, Fellow of the Royal Society, game design, global village, Hedy Lamarr / George Antheil, HyperCard, invention of air conditioning, invention of the printing press, invention of the telegraph, Islamic Golden Age, Jacquard loom, Jacques de Vaucanson, James Watt: steam engine, Jane Jacobs, John von Neumann, joint-stock company, Joseph-Marie Jacquard, land value tax, Landlord’s Game, lone genius, mass immigration, megacity, Minecraft, moral panic, Murano, Venice glass, music of the spheres, Necker cube, New Urbanism, Oculus Rift, On the Economy of Machinery and Manufactures, pattern recognition, peer-to-peer, pets.com, placebo effect, probability theory / Blaise Pascal / Pierre de Fermat, profit motive, QWERTY keyboard, Ray Oldenburg, spice trade, spinning jenny, statistical model, Steve Jobs, Steven Pinker, Stewart Brand, supply-chain management, talking drums, the built environment, The Great Good Place, the scientific method, The Structural Transformation of the Public Sphere, trade route, Turing machine, Turing test, Upton Sinclair, urban planning, Victor Gruen, Watson beat the top human players on Jeopardy!, white flight, white picket fence, Whole Earth Catalog, working poor, Wunderkammern

He was, instead, a computer scientist from MIT named Edward Thorp, who had come to Vegas not to break the bank but rather to test a brand-new device: the very first wearable computer ever designed. Thorp had an accomplice at the roulette table, standing unobserved at the other end, pretending not to know his partner. He would have been unrecognizable to the average casino patron, but he was in fact one of the most important minds of the postwar era: Claude Shannon, the father of information theory and one of the key participants in the invention of digital computers. Thorp had begun thinking about beating the odds at roulette as a graduate student in physics at UCLA in 1955. Unlike card games like blackjack or poker where strategy could make a profound difference in outcomes, roulette was supposed to be a game of pure chance; the ball was equally likely to end up on any number on the wheel.

…

Turing’s speculations form a kind of origin point for two parallel paths that would run through the rest of the century: building intelligence into computers by teaching them to play chess, and studying humans playing chess as a way of understanding our own intelligence. Those interpretative paths would lead to some extraordinary breakthroughs: from the early work on cybernetics and game theory from people like Claude Shannon and John von Neumann, to machines like IBM’s Deep Blue that could defeat grandmasters with ease. In cognitive science, the litany of insights that derived from the study of chess could almost fill an entire textbook, insights that have helped us understand the human capacity for problem solving, pattern recognition, visual memory, and the crucial skill that scientists call, somewhat awkwardly, chunking, which involves grouping a collection of ideas or facts into a single “chunk” so that they can be processed and remembered as a unit.

…

In 1960, having moved on to MIT, Thorp decided to try publishing his blackjack analysis in the Proceedings of the National Academy of Sciences, and sought out the advice of Shannon, the only mathematician at MIT who was also a member of the academy. Impressed by Thorp’s blackjack system, Shannon inquired whether Thorp was working on anything else “in the gambling area.” Dormant for five years, Thorp’s roulette investigation was suddenly reawakened as the two men began a furious year of activity, seeking a predictable pattern in the apparent randomness of the roulette wheel. Claude Shannon with an electronic mouse In his old, rambling wooden house outside of Cambridge, Shannon had created a basement exploratorium that would have astounded Merlin and Babbage. Thorp later described it as a “gadgeteer’s paradise”: It had perhaps a hundred thousand dollars (about six hundred thousand 1998 dollars) worth of electronic, electrical and mechanical items. There were hundreds of mechanical and electrical categories, such as motors, transistors, switches, pulleys, gears, condensers, transformers, and on and on.

pages: 238 words: 46

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When Things Start to Think
** by
Neil A. Gershenfeld

3D printing, Ada Lovelace, Bretton Woods, cellular automata, Claude Shannon: information theory, Dynabook, Hedy Lamarr / George Antheil, I think there is a world market for maybe five computers, invention of movable type, Iridium satellite, Isaac Newton, Jacquard loom, Johannes Kepler, John von Neumann, low earth orbit, means of production, new economy, Nick Leeson, packet switching, RFID, speech recognition, Stephen Hawking, Steve Jobs, telemarketer, the medium is the message, Turing machine, Turing test, Vannevar Bush

Turing thought so; in 194 7 he was able to describe a chess-playing computer program. Since then computer chess has been studied by a who's who of computing pioneers who took it to be a defining challenge for what came to be known as Artificial Intelligence. It was thought that if a machine could win at chess it would have to draw on fundamental insights into how humans think. Claude Shannon, the inventor of Information Theory, which provides the foundation for modern digital communications, designed a simple chess program in 1949 and was able to get it running to play endgames. The first program that could play a full game of chess was developed at IBM in 1957, and an MIT computer won the first BIT BELIEFS + 129 tournament match against a human player in 1967. The first grandmaster lost a game to a computer in 1977.

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There is a disconnect between the breathless pronouncements of cyber gurus and the experience of ordinary people left perpetually upgrading hardware to meet the demands of new software, or wondering where their files have gone, or trying to understand why they can't connect to the network. The revolution so far has been for the computers, not the people. Digital data of all kinds, whether an e-mail message or a movie, is encoded as a string of O's and 1's because of a remarkable discovery by Claude Shannon and John von Neumann in the 1940s. Prior to their work, it was obvious that engineered systems degraded with time and use. A tape recording sounds worse after it is duplicated, a photocopy is less satisfactory than an original, a telephone call becomes more garbled the farther it has to travel. They showed that this is not so for a digital representation. Errors still occur in digital systems, but instead of continuously degrading the performance there is a threshold below which errors can be corrected with near certainty.

…

Many people spent many years unsuccessfully trying to exorcise Maxwell's demon. An important step came in 1929 when Leo Szilard reduced the problem to its essence with a single molecule that could be on either side of a partition. While he wasn't able to solve the demon paradox, this introduced the notion of a "bit" of information. Szilard's one-bit analysis of Maxwell's demon provided the inspiration for Claude Shannon's theory of information in 1948. Just as the steam engine powered the Industrial Revolution, electronic communications was powering an information revolution. And just as finding the capacity of a steam engine was a matter of some industrial import, the growing demand for communications links required an understanding of how many messages could be sent through a wire. Thanks to Szilard, Shannon realized that entropy could measure the capacity of a telephone wire as well as an engine.

pages: 339 words: 57,031

**
From Counterculture to Cyberculture: Stewart Brand, the Whole Earth Network, and the Rise of Digital Utopianism
** by
Fred Turner

1960s counterculture, A Declaration of the Independence of Cyberspace, Apple's 1984 Super Bowl advert, back-to-the-land, bioinformatics, Buckminster Fuller, business cycle, Claude Shannon: information theory, complexity theory, computer age, conceptual framework, Danny Hillis, dematerialisation, distributed generation, Douglas Engelbart, Douglas Engelbart, Dynabook, Electric Kool-Aid Acid Test, From Mathematics to the Technologies of Life and Death, future of work, game design, George Gilder, global village, Golden Gate Park, Hacker Ethic, Haight Ashbury, hive mind, Howard Rheingold, informal economy, invisible hand, Jaron Lanier, John Markoff, John von Neumann, Kevin Kelly, knowledge economy, knowledge worker, market bubble, Marshall McLuhan, mass immigration, means of production, Menlo Park, Mitch Kapor, Mother of all demos, new economy, Norbert Wiener, peer-to-peer, post-industrial society, postindustrial economy, Productivity paradox, QWERTY keyboard, Ralph Waldo Emerson, RAND corporation, Richard Stallman, Robert Shiller, Robert Shiller, Ronald Reagan, Shoshana Zuboff, Silicon Valley, Silicon Valley ideology, South of Market, San Francisco, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, technoutopianism, Ted Nelson, Telecommunications Act of 1996, The Hackers Conference, theory of mind, urban renewal, Vannevar Bush, Whole Earth Catalog, Whole Earth Review, Yom Kippur War

In his book Cybernetics; or, Control and Communication in the Animal and the Machine, he deﬁned cybernetics as a ﬁeld focused on “the study of messages as a means of controlling machinery and society,” with machinery seeming to include, by analogy at least, biological organisms. For Wiener, the world, like the anti-aircraft predictor, was composed of systems linked by, and to some extent made out of, messages. Drawing on Claude Shannon’s information theory (published in 1948, but likely familiar to Wiener much earlier), Wiener deﬁned messages as “forms of pattern and organization.”37 Like Shannon’s information, Wiener’s messages were surrounded by “noise,” yet they somehow maintained their integrity. So too did organisms and machines: incorporating and responding to feedback through structural mechanisms, Wiener explained, both kept themselves in a state of homeostasis.

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Cybernetics, as the theory of control mechanisms in technology and nature and founded on the concepts of information and feedback, is but a part of a general theory of systems; cybernetic systems are a special case, however important, of systems showing self-regulation.” Bertalanffy, General System Theory, 3. For Bertalanffy, cybernetics was only one root of systems theory, albeit an important one. Others included the servomechanisms of the nineteenth century, Claude Shannon’s information theory, Von Neumann and Morgenstern’s game theory, and the increasing need in the post–World War II world to monitor and control large systems for social functions such as trafﬁc and ﬁnance. For a critical analysis of the relationship between cybernetics and other systems theories, see Lilienfeld, Rise of Systems Theory. 44. Rau, “Adoption of Operations Research,” 57, 6. For a fascinating demonstration of the ways systems analysis helped set the aesthetic terms of planning for nuclear war, see Ghamari-Tabrizi, Worlds of Herman Kahn, esp. 54 –57, 128 –30. 45.

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Sirius), 164 Goldstein, Emmanuel, 168, 169 Gore, Al, 219 Graham, Bill, 66 graphical user interface, 111 Grateful Dead, 13, 65, 66, 166 Great Society, 26 Greenblatt, Richard, 136 Greenspan, Alan, 215 Griesemer, James, 72 [ 319 ] Grooms, Red, 48 Gullichsen, Eric, 163 Gurdjieff, Georges Ivanovitch, Meetings with Remarkable Men, 187 hacker ethic, 134 –35, 136 hackers, 117, 132 –35, 133 Hackers’ Conference, 132, 137–38, 168, 169, 171, 219, 249, 254 hacking, as a free-speech issue, 169 Hafner, Katie, 143, 145, 221, 252 Hagel, John, Net Gain, 234 Haight-Ashbury, 32, 48, 66 – 67 Hapgood, Fred, 221–22 “happenings,” 48, 49, 67, 269n14 “hardware hackers,” 133 Harman, Willis, 61, 185, 274n12 Harper’s Magazine, 167 Hart, Pam, 117 Harvard Business Review, analysis of Out of Control, 204 –5 Harvey, David, 242 Hawken, Paul, 128, 185, 188 Hayles, Katherine, 26, 122 Hedgepeth, William, 77 Hefner, Christy, 211 Heims, Steve, 26, 122 Helmreich, Stefan, 198 Hermosillo, Carmen, 155 Herring, Susan, 152 Hertzfeld, Andy, 135 heterarchy, 156 Hewlett-Packard, 138 Hickman, Berry, 96 High Frontiers (’zine), 164 Hillis, Danny, 182, 183, 189 hippies, 32 Hiroshima, 16 Hitt, Jack, 167 Hofmann, Albert, 164 Hog Farm commune, 110 Holm, Richard, 44 Homebrew Computer Club, 70, 102, 106, 114 homeostat, 26, 146, 178 Horowitz, Ed, 208 Hoyt, Brad, 193 HTML code, 222 Hudson Institute, 186 Hudson Review, 47 human-machine collaboration, 108 –9, 111 hyperlinks, 213 [ 320 ] Index I Ching, 65, 82, 93 I. M. Pei, 178 Industry Standard, 207 information: economic paradox of, 136 –37; free dissemination of, 137 Information Processing Techniques Ofﬁce, 108 Information Superhighway, 219 information system, material world imagined as, 15 information theory: and American art, 268n13; of Claude Shannon, 265n43; and microbiology, 43 – 44 Information Week, 131 Innis, Harold, 52, 269n21 Institute for Advanced Study, 185 Intel, 212 Intercontinental Ballistic Missile, 24 interdisciplinary migration, 58 International Federation for Advanced Study (IFAS), 61 Internet, 247; growth of, 160, 214; as infrastructure and symbol of new economic era, 7; as the New Millennium, 232 –36; privatization of backbone, 213; as symbol of a post-Fordist economic order, 202; utopian claims surrounding the emergence of the, 1–3, 33 Internet stocks, 214, 232 Inuit, 53 IT-290, 60 Jackson, Charles, 211 Jennings, Lois, 70 Jerome, Judson, 32 Jobs, Steve, 133, 138 Johnson, Lyndon, 26 Joselit, David, 46 journalism, shaping of public perceptions, 253 Joy, Bill, 220 juxtaposition, 84 Kahn, Herman, 130, 181, 186, 197 Kahn, Lloyd, 94, 95, 97 Kanter, Rosabeth Moss, 76, 271n9 Kapor, Mitch, 171–72, 218 Kaprow, Allan, 46, 48, 58, 67 Katz, Bruce, 211, 277n1 Kay, Alan, 111–13, 117, 177, 246 Kay, Lily, 44 Kelly, Kevin, 3, 16, 131–32; account of “vivisystems,” 200; commercial sphere as a site of social change, 202 –3; “computational metaphor,” 216; concept of “hive mind,” 201, 202, 204; doctrine of cyberevolutionism, 204; editorial model, 195; editor of Signal, 196; editor of Whole Earth Review, 177, 195 –96; as executive director of Wired, 7, 206, 209, 212, 217; and ﬁrst Hackers’ Conference, 195; forum on hacking on the WELL, 168 –70; and Gilder, 223; and hacking community, 135; Internet as symbol of post-Fordist economy, 202; longing to return to an egalitarian world, 248; as network entrepreneur, 194 –99; “New Rules for the New Economy,” 15, 234 –35; Out of Control: The Rise of Neo-Biological Civilization, 176, 195, 199 –206; response to 1987 conference on artiﬁcial life, 199; review of Electric Word, 211; underplayed the work of embodied labor, 204; and the WELL, 148; on WELL design goals, 143 Keniston, Kenneth, 31; The Young Radicals, 261– 62 Kennedy, Alison (aka Queen Mu), 163 Kennedy, John F., 229, 271n10 Kent State University killings, 98, 118 Kepler’s bookstore, 70 Kerouac, Jack, 62 Kerr, Clark, 11, 12 Kesey, Ken: and geodesic dome, 94; leadership of Merry Pranksters, 63, 65, 67; and LSD, 61, 63; notion of Acid Test, 65; One Flew Over the Cuckoo’s Nest, 59 – 60, 64; rejection of agonistic politics, 64; subject of CIA experimental drug protocols, 60 – 61; and the Supplement, 81; and Trips Festival, 66; at Vietnam Day in 1965, 98 Keyworth, George, 222; “Magna Carta for the Knowledge Age,” 228 –30 Kleiner, Art, 131, 132, 135, 185 Kline, David, 287n37 Korzybski, Alfred, 62 Kravitz, Henry, 211 Kubrick, Stanley, 186 Kuhr, Barbara, 211, 285n2 Lama Foundation, 75, 76, 94, 97, 109, 119 Lampson, Butler, 111 Langton, Christopher, 198 Language Technology (magazine), 211 Lanier, Jaron, 163, 165, 172, 195 laser printer, 111 Index Last Whole Earth Catalog, 70, 81, 98, 112, 118 Learning Conferences, 181– 84 Leary, Timothy, 51, 163, 164, 165 legitimacy exchange, 25 –26, 84, 85, 88, 95, 250 Lehr, Stan, 210 Levy, Steven, 137, 139, 195; Hackers: Heroes of the Computer Revolution, 132 –35 Leyden, Peter, 233 –34 Libertarianism, 210, 249, 259, 287n49 Libre commune, 81, 94, 96, 109 Licklider, Joseph C.

pages: 137 words: 36,231

**
Information: A Very Short Introduction
** by
Luciano Floridi

agricultural Revolution, Albert Einstein, bioinformatics, carbon footprint, Claude Shannon: information theory, conceptual framework, double helix, Douglas Engelbart, Douglas Engelbart, George Akerlof, Gordon Gekko, industrial robot, information asymmetry, intangible asset, Internet of things, invention of writing, John Nash: game theory, John von Neumann, Laplace demon, moral hazard, Nash equilibrium, Nelson Mandela, Norbert Wiener, Pareto efficiency, phenotype, Pierre-Simon Laplace, prisoner's dilemma, RAND corporation, RFID, Thomas Bayes, Turing machine, Vilfredo Pareto

The mathematical theory of communication (MTC) is by far the most important, influential, and widely known. The name for this branch of probability theory comes from Claude Shannon's seminal work. Shannon pioneered the field of mathematical studies of information and obtained many of its principal results, even though he acknowledged the importance of previous work done by other researchers and colleagues at Bell laboratories. After Shannon, MTC became known as information theory. Today, Shannon is considered `the father of information theory', and the kind of information MTC deals with is often qualified as Shannon information. The term `information theory' is an appealing but unfortunate label, which continues to cause endless misunderstandings. Shannon came to regret its widespread popularity, and I shall avoid it in this context.

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My hope is that it will help the reader to make sense of the large variety of informational phenomena with which we deal on a daily basis, of their profound and fundamental importance, and hence of the information society in which we live. Information is notorious for coming in many forms and having many meanings. It can be associated with several explanations, depending on the perspective adopted and the requirements and desiderata one has in mind. The father of information theory, Claude Shannon (1916-2001), for one, was very cautious: The word ' information' has been given different meanings by various writers in the general field of information theory. It is likely that at least a number of these will prove sufficiently useful in certain applications to deserve further study and permanent recognition. It is hardly to be expected that a single concept of information would satisfactorily account for the numerous possible applications of this general field.

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Seligman, Information Flow: The Logic of Distributed Systems (Cambridge: Cambridge University Press, 1997). G. Bateson, Steps to an Ecology of Mind (Frogmore, St Albans: Paladin, 1973). T. M. Cover and J. A. Thomas, Elements of Information Theory (New York; Chichester: Wiley, 1991). F. I. Dretske, Knowledge and the Flow of Information (Oxford: Blackwell, 1981). D. S. Jones, Elementary Information Theory (Oxford: Clarendon Press, 1979). D. M. MacKay, Information, Mechanism and Meaning (Cambridge, MA: MIT Press, 1969). J. R. Pierce, An Introduction to Information Theory: Symbols, Signals and Noise, 2nd edn (New York: Dover Publications, 1980). A. M. Turing, `Computing Machinery and Intelligence', Minds and Machines, 1950, 59, 433-60. Chapter 3 C. Cherry, On Human Communication: A Review, a Survey, and a Criticism, 3rd edn (Cambridge, MA; London: MIT Press, 1978).

pages: 524 words: 120,182

**
Complexity: A Guided Tour
** by
Melanie Mitchell

Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, Albert Michelson, Alfred Russel Wallace, anti-communist, Arthur Eddington, Benoit Mandelbrot, bioinformatics, cellular automata, Claude Shannon: information theory, clockwork universe, complexity theory, computer age, conceptual framework, Conway's Game of Life, dark matter, discrete time, double helix, Douglas Hofstadter, en.wikipedia.org, epigenetics, From Mathematics to the Technologies of Life and Death, Geoffrey West, Santa Fe Institute, Gödel, Escher, Bach, Henri Poincaré, invisible hand, Isaac Newton, John Conway, John von Neumann, Long Term Capital Management, mandelbrot fractal, market bubble, Menlo Park, Murray Gell-Mann, Network effects, Norbert Wiener, Norman Macrae, Paul Erdős, peer-to-peer, phenotype, Pierre-Simon Laplace, Ray Kurzweil, reversible computing, scientific worldview, stem cell, The Wealth of Nations by Adam Smith, Thomas Malthus, Turing machine

The nineteenth-century studies of thermodynamics were inspired and driven by the challenge of improving steam engines. The studies of information by mathematician Claude Shannon were likewise driven by the twentieth-century revolution in communications—particularly the development of the telegraph and telephone. In the 1940s, Shannon adapted Boltzmann’s ideas to the more abstract realm of communications. Shannon worked at Bell Labs, a part of the American Telephone and Telegraph Company (AT&T). One of the most important problems for AT&T was to figure out how to transmit signals more quickly and reliably over telegraph and telephone wires. Claude Shannon, 1916–2001. (Reprinted with permission of Lucent Technologies Inc./Bell Labs.) Shannon’s mathematical solution to this problem was the beginning of what is now called information theory. In his 1948 paper “A Mathematical Theory of Communication,” Shannon gave a narrow definition of information and proved a very important theorem, which gave the maximum possible transmission rate of information over a given channel (wire or other medium), even if there are errors in transmission caused by noise on the channel.

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On the other hand, people want language to be unambiguous, which they can accomplish by using different words for similar but nonidentical meanings. Zipf showed mathematically that these two pressures working together could produce the observed power-law distribution. In the 1950s, Benoit Mandelbrot, of fractal fame, had a somewhat different explanation, in terms of information content. Following Claude Shannon’s formulation of information theory (cf. chapter 3), Mandelbrot considered a word as a “message” being sent from a “source” who wants to maximize the amount of information while minimizing the cost of sending that information. For example, the words feline and cat mean the same thing, but the latter, being shorter, costs less (or takes less energy) to transmit. Mandelbrot showed that if the information content and transmission costs are simultaneously optimized, the result is Zipf’s law.

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A prime mover of this group was the mathematician Norbert Wiener, whose work on the control of anti-aircraft guns during World War II had convinced him that the science underlying complex systems in both biology and engineering should focus not on the mass, energy, and force concepts of physics, but rather on the concepts of feedback, control, information, communication, and purpose (or “teleology”). Norbert Wiener, 1894–1964 (AIP Emilio Segre Visual Archives) In addition to Norbert Wiener, the series of Macy Foundation conferences included several scientific luminaries of the time, such as John von Neumann, Warren McCulloch, Margaret Mead, Gregory Bateson, Claude Shannon, W. Ross Ashby, among others. The meetings led Wiener to christen a new discipline of cybernetics, from the Greek word for “steersman”—that is, one who controls a ship. Wiener summed up cybernetics as “the entrie field of control and communication theory, whether in the machine or in the animal.” The discussions and writings of this loose-knit cybernetics group focused on many of the issues that have come up in this book.

pages: 124 words: 36,360

**
Kitten Clone: Inside Alcatel-Lucent
** by
Douglas Coupland

British Empire, cable laying ship, Claude Shannon: information theory, cosmic microwave background, Downton Abbey, Hibernia Atlantic: Project Express, hiring and firing, Isaac Newton, Jeff Bezos, Marshall McLuhan, oil shale / tar sands, pre–internet, Richard Feynman, Silicon Valley, Skype, Steve Jobs, Turing machine, undersea cable, upwardly mobile, urban planning, Wall-E

“The transistor was invented here because vacuum tubes were too expensive and died too easily. But we couldn’t have done anything too practical with the transistor unless someone figured out that information needs to be converted into ones and zeroes to be processed properly. That happened here, and was shared with the world in the July and October 1948 issues of the Bell System Technical Journal, in Claude Shannon’s seminal ‘A Mathematical Theory of Communication.’ In the next decades, lasers and optical fibre were developed to overcome the limitations of copper wiring; cellular-based wireless communication was developed to maximize the amount of information that could be passed within a system. An iPhone 4, if made with vacuum tubes, would fill one-quarter of the Grand Canyon.” “Really?” “No. I just made that up.

…

But once we enter the building’s work areas, the dust and anonymity of the corporate sections vanishes, replaced by an almost fantastically utilitarian vibe that is part community college, part sci-fi movie, and part “What would the world be like if it was designed by the guy who ran your high school’s AV crib?” Cinder-block walls, ivory enamel paint. Solid creative energy. And yes, as Markus Hofmann told me earlier, the hallways are very narrow and very, very long. Two people passing each other have no choice but to say hello, and it’s easy to imagine the transistor’s 1947 inventor, William Shockley, bumping into Claude Shannon while absent-mindedly whistling an Andrews Sisters tune, then saying, “Claude, wouldn’t it be something if all information could be reduced to ones and zeroes?” Aside from the dimmed lighting (cost-cutting) and the blue recycling boxes outside some of the doors, there’s no tangible difference in these hallways from what would have been here six decades earlier. I am taken to meet Debasis Mitra, a Bell Labs long-timer whose office, Room 2C-382, stands out in Bell Labs for feeling cheerful: I see Ping-Pong trophies atop a bookcase, and a philodendron bathed in sunlight has grown rampant and attests to his tenure.

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Depressing. Or is technological determinism nonsense? Maybe we can control what we invent and when we invent it. Since 1925, Bell Labs has generated seven Nobel prizes and changed the course of humanity with stunning regularity. No California redwood forest full of brainstorming genius billionaires could compete with Bell Labs’ creative heyday of the mid-twentieth century: the transistor, information theory, lasers, solar energy, radio astronomy, microchips, UNIX, mobile phones, mobile networks—all invented here. Most of these inventions led to the Internet in one way or other, and many of them could plausibly only have been invented here, in the way they were. So much for technological determinism. And now the French own Bell Labs, which is a reasonably good thing, because being owned by Americans wasn’t doing Bell Labs much good.

pages: 416 words: 112,268

**
Human Compatible: Artificial Intelligence and the Problem of Control
** by
Stuart Russell

3D printing, Ada Lovelace, AI winter, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Alfred Russel Wallace, Andrew Wiles, artificial general intelligence, Asilomar, Asilomar Conference on Recombinant DNA, augmented reality, autonomous vehicles, basic income, blockchain, brain emulation, Cass Sunstein, Claude Shannon: information theory, complexity theory, computer vision, connected car, crowdsourcing, Daniel Kahneman / Amos Tversky, delayed gratification, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Ernest Rutherford, Flash crash, full employment, future of work, Gerolamo Cardano, ImageNet competition, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of the wheel, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John Nash: game theory, John von Neumann, Kenneth Arrow, Kevin Kelly, Law of Accelerating Returns, Mark Zuckerberg, Nash equilibrium, Norbert Wiener, NP-complete, openstreetmap, P = NP, Pareto efficiency, Paul Samuelson, Pierre-Simon Laplace, positional goods, probability theory / Blaise Pascal / Pierre de Fermat, profit maximization, RAND corporation, random walk, Ray Kurzweil, recommendation engine, RFID, Richard Thaler, ride hailing / ride sharing, Robert Shiller, Robert Shiller, Rodney Brooks, Second Machine Age, self-driving car, Shoshana Zuboff, Silicon Valley, smart cities, smart contracts, social intelligence, speech recognition, Stephen Hawking, Steven Pinker, superintelligent machines, Thales of Miletus, The Future of Employment, Thomas Bayes, Thorstein Veblen, transport as a service, Turing machine, Turing test, universal basic income, uranium enrichment, Von Neumann architecture, Wall-E, Watson beat the top human players on Jeopardy!, web application, zero-sum game

It included the sentence from my Dulwich talk about the biggest event in human history. From then on, I would be publicly committed to the view that my own field of research posed a potential risk to my own species. How Did We Get Here? The roots of AI stretch far back into antiquity, but its “official” beginning was in 1956. Two young mathematicians, John McCarthy and Marvin Minsky, had persuaded Claude Shannon, already famous as the inventor of information theory, and Nathaniel Rochester, the designer of IBM’s first commercial computer, to join them in organizing a summer program at Dartmouth College. The goal was stated as follows: The study is to proceed on the basis of the conjecture that every aspect of learning or any other feature of intelligence can in principle be so precisely described that a machine can be made to simulate it.

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The media went berserk. The market capitalization of IBM increased by $18 billion overnight. AI had, by all accounts, achieved a massive breakthrough. From the point of view of AI research, the match represented no breakthrough at all. Deep Blue’s victory, impressive as it was, merely continued a trend that had been visible for decades. The basic design for chess-playing algorithms was laid out in 1950 by Claude Shannon,1 with major improvements in the early 1960s. After that, the chess ratings of the best programs improved steadily, mainly as a result of faster computers that allowed programs to look further ahead. In 1994,2 Peter Norvig and I charted the numerical ratings of the best chess programs from 1965 onwards, on a scale where Kasparov’s rating was 2805. The ratings started at 1400 in 1965 and improved in an almost perfect straight line for thirty years.

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They are notoriously hard to tell apart and were viewed as a single breed until 1964. 71. A very unfortunate incident with image labeling: Daniel Howley, “Google Photos mislabels 2 black Americans as gorillas,” Yahoo Tech, June 29, 2015. 72. Follow-up article on Google and gorillas: Tom Simonite, “When it comes to gorillas, Google Photos remains blind,” Wired, January 11, 2018. CHAPTER 3 1. The basic plan for game-playing algorithms was laid out by Claude Shannon, “Programming a computer for playing chess,” Philosophical Magazine, 7th ser., 41 (1950): 256–75. 2. See figure 5.12 of Stuart Russell and Peter Norvig, Artificial Intelligence: A Modern Approach, 1st ed. (Prentice Hall, 1995). Note that the rating of chess players and chess programs is not an exact science. Kasparov’s highest-ever Elo rating was 2851, achieved in 1999, but current chess engines such as Stockfish are rated at 3300 or more. 3.

pages: 566 words: 122,184

**
Code: The Hidden Language of Computer Hardware and Software
** by
Charles Petzold

Bill Gates: Altair 8800, Claude Shannon: information theory, computer age, Donald Knuth, Douglas Engelbart, Douglas Engelbart, Dynabook, Eratosthenes, Grace Hopper, invention of the telegraph, Isaac Newton, Jacquard loom, James Watt: steam engine, John von Neumann, Joseph-Marie Jacquard, Louis Daguerre, millennium bug, Norbert Wiener, optical character recognition, popular electronics, Richard Feynman, Richard Stallman, Silicon Valley, Steve Jobs, Turing machine, Turing test, Vannevar Bush, Von Neumann architecture

Long after core memory had been replaced by other technologies, it was common to hear older programmers refer to the memory that the processor accessed as core. John von Neumann wasn't the only person doing some major conceptual thinking about the nature of computers in the 1940s. Claude Shannon (born 1916) was another influential thinker. In Chapter 11, I discussed his 1938 master's thesis, which established the relationship between switches, relays, and Boolean algebra. In 1948, while working for Bell Telephone Laboratories, he published a paper in the Bell System Technical Journal entitled "A Mathematical Theory of Communication" that not only introduced the word bit in print but established a field of study today known as information theory. Information theory is concerned with transmitting digital information in the presence of noise (which usually prevents all the information from getting through) and how to compensate for that.

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In this case, the input switches correspond to 4 bits of information that describe a cat. The output device is the lightbulb. This bulb lights up if the switches describe a satisfactory cat. The switches shown in the control panel on page 104 are set for a female unneutered black cat. This satisfies your criteria, so the lightbulb is lit. Now all we have to do is design a circuit that makes this control panel work. You'll recall that Claude Shannon's thesis was entitled "A Symbolic Analysis of Relay and Switching Circuits." The relays he was referring to were quite similar to the telegraph relays that we encountered in Chapter 6. By the time of Shannon's paper, however, relays were being used for other purposes and, in particular, in the vast network of the telephone system. Like switches, relays can be connected in series and in parallel to perform simple tasks in logic.

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This is the same as combining the two operands with the Boolean OR operator and then inverting the result (which is the NOR). In the second expression, the two operands are inverted and then combined with the Boolean OR operator. This is the same as combining the operands with the Boolean AND operator and then inverting (which is the NAND). De Morgan's Laws are an important tool for simplifying Boolean expressions and hence, for simplifying circuits. Historically, this was what Claude Shannon's paper really meant for electrical engineers. But obsessively simplifying circuits won't be a major concern in this book. It's preferable to get things working rather than to get things working as simply as possible. And what we're going to get working next is nothing less than an adding machine. Chapter 12. A Binary Adding Machine Addition is the most basic of arithmetic operations, so if we want to build a computer (and that is my hidden agenda in this book), we must first know how to build something that adds two numbers together.

**
The Fractalist
** by
Benoit Mandelbrot

Albert Einstein, Benoit Mandelbrot, Brownian motion, business cycle, Claude Shannon: information theory, discrete time, double helix, Georg Cantor, Henri Poincaré, Honoré de Balzac, illegal immigration, Isaac Newton, iterative process, Johannes Kepler, John von Neumann, linear programming, Louis Bachelier, Louis Blériot, Louis Pasteur, mandelbrot fractal, New Journalism, Norbert Wiener, Olbers’ paradox, Paul Lévy, Richard Feynman, statistical model, urban renewal, Vilfredo Pareto

(Illustration Credit 11.2) A few years later, I overheard a friend enthusing about his military assignment: “One thing I can tell you guys is that the Office of Scientific Research is very civilized.” Turning to me, he continued, “It seems that you don’t believe me!” I responded, “Of course I do. I tailored it to my needs, and am delighted that they also fit yours.” In a serious vein, liaising was a good opportunity to scout for Ph.D. topics. At Caltech, I had read the seed papers in which Claude Shannon founded information theory, and I badly wanted to know more. A get-together in London on this topic attracted me greatly, so I asked if I could attend. The air force obliged and sent me there. It was my first scientific conference. An Extended Sentence? The end of my twelve months of duty was approaching, and I was counting days. But at the last moment, to show solidarity for the U.S. effort in Korea, France extended the length of compulsory military service to eighteen months.

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Therefore, RLE was often filled with either the aroma of a traditional chocolate factory or the stench of a rendering plant that boiled carrion into pure white soap. I took all this as constant confirmation that the process of creation is intrinsically messy and suffers more from soulless order than from surrounding physical decay. Controversial Balance Between Conjecture and Proof Claude Shannon (1916–2001) was the intellectual leader whose wartime work, published in 1948, created information theory and provided RLE with an intellectual backbone. His work on noiseless channels was a point of departure for the theory of word frequencies presented in my Ph.D. thesis. But far more impressive was his noisy channel theorem. Actually, it was not a theorem at all, only a brilliant conjecture—in a style that is controversial, and of which I eventually became a very active supplier.

…

I never seriously thought of moving over, but I felt energized and kept looking for analogous openings closer to my strengths. The timing was ideal because several new developments that had been “bottled up” by war conditions were being revealed in a kind of fireworks I saw on no other occasion. My restless curiosity led me to read works that were widely discussed when they appeared: Mathematical Theory of Communication by Claude Shannon, Cybernetics, or Control and Communication in the Animal and the Machine by Norbert Wiener, and Theory of Games and Economic Behavior by John von Neumann and Oskar Morgenstern. Except for a fleeting thought that I might return to mathematics in 1949 via the University of Chicago, I was beginning to think that the examples of Wiener and von Neumann might guide me to an idea big enough to make me, in some way, the Delbrück of a new field.

pages: 319 words: 90,965

**
The End of College: Creating the Future of Learning and the University of Everywhere
** by
Kevin Carey

Albert Einstein, barriers to entry, Bayesian statistics, Berlin Wall, business cycle, business intelligence, carbon-based life, Claude Shannon: information theory, complexity theory, David Heinemeier Hansson, declining real wages, deliberate practice, discrete time, disruptive innovation, double helix, Douglas Engelbart, Douglas Engelbart, Downton Abbey, Drosophila, Firefox, Frank Gehry, Google X / Alphabet X, informal economy, invention of the printing press, inventory management, John Markoff, Khan Academy, Kickstarter, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, natural language processing, Network effects, open borders, pattern recognition, Peter Thiel, pez dispenser, ride hailing / ride sharing, Ronald Reagan, Ruby on Rails, Sand Hill Road, self-driving car, Silicon Valley, Silicon Valley startup, social web, South of Market, San Francisco, speech recognition, Steve Jobs, technoutopianism, transcontinental railway, uber lyft, Vannevar Bush

Bill was enacted, the director of the national Office of Scientific Research and Development, Vannevar Bush, sent a report to President Truman titled Science: The Endless Frontier. Bush had a doctorate in electrical engineering from MIT, where he had served as a scientist and administrator. He and his colleagues had made important contributions to the emerging development of computer science; his student Claude Shannon helped develop the information theory that sits at the heart of modern computing. Science, Bush said, was a source of great good for humanity. Penicillin and other medical advances had saved countless lives. “In 1939 millions of people were employed in industries which did not even exist at the close of the last war—radio, air conditioning, rayon and other synthetic fibers, and plastics. . . . But these things do not mark the end of progress—they are but the beginning if we make full use of our scientific resources.”

…

Six months later, Simon attended a conference at Dartmouth College, where he and a small group of scientists gave a name to this new field of research: artificial intelligence. The study of the human mind and the exploding power of information technology were coming together, and the smartest people in the world were in the middle of the action. Among the Dartmouth participants was Claude Shannon, a former student of Vannevar Bush at MIT and one of the fathers of modern information theory. In addition to creating the blueprint for the Cold War university, Bush had also seen the future technological revolution. In a 1945 Atlantic article titled “As We May Think,” Bush observed that various fields of manufacturing and computing were on trajectories of improvement that would soon lead to changes that, although they might be unknowable in the specific, were highly predictable in general.

…

The university relished becoming a breeding ground for thunder lizards because those unruly beasts always left their nest unscathed. Until, that is, the summer of 2011, when a computer science professor named Sebastian Thrun had a kind of inspiration. Thrun was born in Germany and trained in computer science and statistics at the University of Bonn. His specialty was artificial intelligence, continuing the project first outlined at the Dartmouth conference by Herbert Simon, Claude Shannon, and others back in 1956. Carnegie Mellon hired Thrun as a professor in 1995, and he spent most of the next decade in Pittsburgh working at the intersection of computer science, statistics, and machines. Artificial intelligence had come in and out of fashion over the years. Initial hopes for replicating the human mind in silicon had proved highly optimistic as the parallel march of neuroscience and cognitive psychology revealed how fantastically complicated human cognition truly was.

pages: 294 words: 96,661

**
The Fourth Age: Smart Robots, Conscious Computers, and the Future of Humanity
** by
Byron Reese

agricultural Revolution, AI winter, artificial general intelligence, basic income, Buckminster Fuller, business cycle, business process, Claude Shannon: information theory, clean water, cognitive bias, computer age, crowdsourcing, dark matter, Elon Musk, Eratosthenes, estate planning, financial independence, first square of the chessboard, first square of the chessboard / second half of the chessboard, full employment, Hans Rosling, income inequality, invention of agriculture, invention of movable type, invention of the printing press, invention of writing, Isaac Newton, Islamic Golden Age, James Hargreaves, job automation, Johannes Kepler, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, lateral thinking, life extension, Louis Pasteur, low skilled workers, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Mary Lou Jepsen, Moravec's paradox, On the Revolutions of the Heavenly Spheres, pattern recognition, profit motive, Ray Kurzweil, recommendation engine, Rodney Brooks, Sam Altman, self-driving car, Silicon Valley, Skype, spinning jenny, Stephen Hawking, Steve Wozniak, Steven Pinker, strong AI, technological singularity, telepresence, telepresence robot, The Future of Employment, the scientific method, Turing machine, Turing test, universal basic income, Von Neumann architecture, Wall-E, Watson beat the top human players on Jeopardy!, women in the workforce, working poor, Works Progress Administration, Y Combinator

He suggested an internal processor and computer memory that holds both programs and data. In addition to the computer’s memory, there might also be external storage to hold data and information not currently needed. Throw in input and output devices, and one has a von Neumann setup. If, when you were reading that, your brain mapped it to your computer’s CPU, memory, hard drive, keyboard, and monitor, then move to the head of the class. Finally, in 1949, Claude Shannon wrote a paper entitled “Programming a Computer for Playing Chess” in which he described a way to reduce chess to a series of calculations that could be performed on a computer. While this may not sound like it should earn Shannon one of the four spots on the Mount Rushmore of computer history, for the first time, in a practical and realistic way, computers were thought of as not just machines to perform mathematical calculations.

…

The ultimate purpose of this book is to explore these ideas—to figure out just how much human activity, both mental and physical, we can delegate to machines, and what the implications of that change will mean for the world. Has the Fourth Age begun yet? Well, when just a few humans learned to farm, or a few isolated places developed writing, did that mark the beginning of a new age or the beginning of the end of an old one? It matters very little where we draw the line. Whether it already happened decades ago when Claude Shannon explained how a computer could be programmed to play chess, or whether it will happen in a few years when a computer can carry on a complex conversation with a human using natural language, this kind of hairsplitting is not particularly meaningful. Let’s say that the transition began no earlier than 1950 and will complete no later than 2050. Draw your line anywhere in there you choose, or label the entire period as a transition.

…

John McCarthy, a math professor at Dartmouth, decided to organize a project to explore the possibilities and limits of “artificial intelligence,” a term he had coined the previous year. The goal was to “find how to make machines use language, form abstractions and concepts, solve [the] kinds of problems now reserved for humans, and improve themselves.” To do this, he put together a group of four computer scientists who were already thinking about machines that could think: himself, Marvin Minsky, Nathaniel Rochester, and Claude Shannon, whom we met earlier when we discussed the first chess-playing computer program. Their proposal then added a very, shall we say, “optimistic” prediction, especially given that it was 1955: “We think that a significant advance can be made in one or more of these problems if a carefully selected group of scientists work on it together for a summer.” McCarthy later regretted using the term “artificial intelligence” to describe this concept, feeling that it set the bar too high.

pages: 317 words: 101,074

**
The Road Ahead
** by
Bill Gates,
Nathan Myhrvold,
Peter Rinearson

Albert Einstein, Apple's 1984 Super Bowl advert, Berlin Wall, Bill Gates: Altair 8800, Bob Noyce, Bonfire of the Vanities, business process, California gold rush, Claude Shannon: information theory, computer age, Donald Knuth, first square of the chessboard, first square of the chessboard / second half of the chessboard, glass ceiling, global village, informal economy, invention of movable type, invention of the printing press, invention of writing, John von Neumann, knowledge worker, medical malpractice, Mitch Kapor, new economy, packet switching, popular electronics, Richard Feynman, Ronald Reagan, speech recognition, Steve Ballmer, Steve Jobs, Steven Pinker, Ted Nelson, telemarketer, the scientific method, The Wealth of Nations by Adam Smith, transaction costs, Turing machine, Turing test, Von Neumann architecture

This is why a computer's capacity to compress digital data, store or transmit it, then expand it back into its original form is so useful and will become more so. Quickly, here's how the computer accomplishes these feats. It goes back to Claude Shannon, the mathematician who in the 1930s recognized how to express information in binary form. During World War II, he began developing a mathematical description of information and founded a field that later became known as information theory. Shannon defined information as the reduction of uncertainty. By this definition, if you already know it is Saturday and someone tells you it is Saturday, you haven't been given any information. On the other hand, if you're not sure of the day and someone tells you it is Saturday, you've been given information, because your uncertainty has been reduced. Shannon's information theory eventually led to other break-throughs. One was effective data-compression, vital to both computing and communications.

…

It is hard to sort out the paternity of the modern computer, because much of the thinking and work was done in the United States and Britain during World War II under the cloak of wartime secrecy. Three major contributors were Alan Turing, Claude Shannon, and John von Neumann. In the mid-1930s, Alan Turing, like Babbage a superlative Cambridge-trained British mathematician, proposed what is known today as a Turing machine. It was his version of a completely general-purpose calculating machine that could be instructed to work with almost any kind of information. In the late 1930s, when Claude Shannon was still a student, he demonstrated that a machine executing logical instructions could manipulate information. His insight, the subject of his master's thesis, was about how computer circuits—closed for true and open for false—could perform logical operations, using the number 1 to represent "true" and 0 to represent "false."

pages: 174 words: 56,405

**
Machine Translation
** by
Thierry Poibeau

AltaVista, augmented reality, call centre, Claude Shannon: information theory, cloud computing, combinatorial explosion, crowdsourcing, easy for humans, difficult for computers, en.wikipedia.org, Google Glasses, information retrieval, Internet of things, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, natural language processing, Necker cube, Norbert Wiener, RAND corporation, Robert Mercer, Skype, speech recognition, statistical model, technological singularity, Turing test, wikimedia commons

Richens, he also created a word-for-word translation system based on bilingual dictionaries. These propositions were the first step toward a global approach to automatic translation but were quickly recognized as too simplistic, particularly by Weaver. Weaver’s Memorandum The father of machine translation—and more generally of natural language processing—is unquestionably Warren Weaver. Along with Claude Shannon, he was the author of a mathematical model of communication in 1949. His proposal was very general and therefore applicable to many contexts. In Weaver and Shannon’s model, a message is first encoded by a source (which can be a human or a machine), sent, and then decoded by a receiver. For example, a message can be coded in Morse code, transmitted by radio, and then decoded in order to be comprehensible by a human.

…

The key focus of this short report was in fact translation needs: the usefulness of translation for relevant agencies—mostly the public sector and businesses related to security and defense; the report observes that the majority of requested translations are of negligible interest, and ultimately are either partially read or not read at all—and the costs associated with these translations. The discussion on machine translations takes up only a short five-page chapter. The Automatic Language Processing Advisory Committee (ALPAC) was directed by John R. Pierce, an information and communication theory specialist (he had worked with Claude Shannon in particular; see chapter 5). In addition to Pierce, the committee was made up of linguists, artificial intelligence specialists, and a psychologist. None of the committee members were working on machine translation at the time of the report, though two of the members (David G. Hays and Anthony G. Oettinger) had previously been active in the field. The committee did, however, interview several machine translation specialists (Paul Garvin, Jules Mersel, and Gilbert King as representatives from private companies working on machine translation, as well as Winfred P.

…

We must also keep in mind the relative lack of computers and their limited capabilities—at the time of punch cards—which drastically restricted possibilities for experimentation. However, Bar-Hillel’s report raised doubts not only for those funding the research, but also for researchers themselves. Several leading figures left the field at the beginning of the 1960s and moved to research in linguistics, computer science, or information theory. Certain researchers were even more negative than Bar-Hillel himself on machine translation. Alternatively, the demonstration gave a glimpse of the numerous problems the first projects had underestimated. Georgetown’s and IBM’s attempt to industrialize practical solutions yielded very poor results. All of this brought funding agencies in 1964 to ask an independent committee for an evaluation report.

pages: 223 words: 52,808

**
Intertwingled: The Work and Influence of Ted Nelson (History of Computing)
** by
Douglas R. Dechow

3D printing, Apple II, Bill Duvall, Brewster Kahle, Buckminster Fuller, Claude Shannon: information theory, cognitive dissonance, computer age, conceptual framework, Douglas Engelbart, Douglas Engelbart, Dynabook, Edward Snowden, game design, HyperCard, hypertext link, information retrieval, Internet Archive, Jaron Lanier, knowledge worker, linked data, Marc Andreessen, Marshall McLuhan, Menlo Park, Mother of all demos, pre–internet, RAND corporation, semantic web, Silicon Valley, software studies, Steve Jobs, Steve Wozniak, Stewart Brand, Ted Nelson, the medium is the message, Vannevar Bush, Wall-E, Whole Earth Catalog

Xanadu is a daring design that presented awesome challenges: how to link to evolving documents, how to track changes to a document, how to manipulate linkages, how to organize archival storage, how to name the target of a link, how to track micro-copyright royalties, how to organize the physical storage of a universe of discourse and how to scale storage and processing around the world. Many people are still skeptical of the need for bi-directional links. I am one who suspects links might only occasionally need to be bi-directional, or that a pair of one-way links could simulate a bi-directional link. Claude Shannon’s popular demonstration of his computer-controlled maze-navigating mouse was essential to the success of his project. Shannon’s demonstration appeared as a segment in the television show, Time Machine: Robots [2]. Shannon went to a lot of trouble to prepare a tabletop maze and to eliminate any arm or cord connecting the mouse to the computer. This greatly enhanced the impact of his presentation, and of his theory.

…

Open Access This chapter is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited. References 1. Nelson TH (1974) Computer lib: you can and must understand computers now/dream Machines. Hugo’s Book Service, Chicago 2. Time Machine: Robots. Robots. History Channel. Aug.–Sept. 2000. Television. See segment on Claude, Shannon. 1952. Theseus Maze-Solving Mouse. (begins at 9:16 in the video). http://youtu.be/KmURvu4x0Do Part III Hypertext and Ted Nelson-Influenced Research © The Author(s) 2015 Douglas R. Dechow and Daniele C. Struppa (eds.)IntertwingledHistory of Computing10.1007/978-3-319-16925-5_9 9. The Importance of Ted’s Vision Belinda Barnet1 (1)Media and Communications, Faculty of Health, Arts and Design, School of Arts, Social Sciences and Humanities, Department of Media and Communication, Swinburne University of Technology, Hawthorn, Australia Belinda Barnet Email: BBarnet@groupwise.swin.edu.au Sometimes a journey makes itself necessary, as Anne Carson puts it in Autobiography of Red [3, p. 46].

…

From Nelson, Computer Lib/Dream Machines (Courtesy of Theodor Holm Nelson) The problem of the relationship between coding and thinking has always been central to the work of Theodor Holm Nelson, and a key aspect of his influence both inside and outside computer fields has been his unwavering insistence on the epistemological consequences of this relationship, often discussed under the rubric he calls “systems humanism.” While there is every reason to read Nelson as a figure in the modern history of information theory and design, there are as many reasons to read him in the stream of the contemporary humanities. More concretely, there are excellent reasons to consider Nelson’s work—from his earliest efforts such as the literary journal, Nothing, through to his visionary samizdat manifesto, Computer Lib/Dream Machines, and his recent work reconceptualizing the spreadsheet—as a guide to the universe of paper as it is to that of the screen.

pages: 340 words: 97,723

**
The Big Nine: How the Tech Titans and Their Thinking Machines Could Warp Humanity
** by
Amy Webb

Ada Lovelace, AI winter, Airbnb, airport security, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, artificial general intelligence, Asilomar, autonomous vehicles, Bayesian statistics, Bernie Sanders, bioinformatics, blockchain, Bretton Woods, business intelligence, Cass Sunstein, Claude Shannon: information theory, cloud computing, cognitive bias, complexity theory, computer vision, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Deng Xiaoping, distributed ledger, don't be evil, Donald Trump, Elon Musk, Filter Bubble, Flynn Effect, gig economy, Google Glasses, Grace Hopper, Gödel, Escher, Bach, Inbox Zero, Internet of things, Jacques de Vaucanson, Jeff Bezos, Joan Didion, job automation, John von Neumann, knowledge worker, Lyft, Mark Zuckerberg, Menlo Park, move fast and break things, move fast and break things, natural language processing, New Urbanism, one-China policy, optical character recognition, packet switching, pattern recognition, personalized medicine, RAND corporation, Ray Kurzweil, ride hailing / ride sharing, Rodney Brooks, Rubik’s Cube, Sand Hill Road, Second Machine Age, self-driving car, SETI@home, side project, Silicon Valley, Silicon Valley startup, skunkworks, Skype, smart cities, South China Sea, sovereign wealth fund, speech recognition, Stephen Hawking, strong AI, superintelligent machines, technological singularity, The Coming Technological Singularity, theory of mind, Tim Cook: Apple, trade route, Turing machine, Turing test, uber lyft, Von Neumann architecture, Watson beat the top human players on Jeopardy!, zero day

And it would take another 100 years for someone to realize that Boolean logic and probability could help computers evolve from automating basic math to more complex thinking machines. There wasn’t a way to build a thinking machine—the processes, materials, and power weren’t yet available—and so the theory couldn’t be tested. The leap from theoretical thinking machines to computers that began to mimic human thought happened in the 1930s with the publication of two seminal papers: Claude Shannon’s “A Symbolic Analysis of Switching and Relay Circuits” and Alan Turing’s “On Computable Numbers, with an Application to the Entscheidungsproblem.” As an electrical engineering student at MIT, Shannon took an elective course in philosophy—an unusual diversion. Boole’s An Investigation of the Laws of Thought became the primary reference for Shannon’s thesis. His advisor, Vannevar Bush, encouraged him to map Boolean logic to physical circuits.

…

The real problem was taking the leap necessary to believe that machines might someday see, reason, and remember—and that humans might get in the way of that progress. This would require his fellow researchers to observe cognition without spiritualism and to believe in the plausibility of intelligent machines that, unlike people, would make decisions in a nonconscious way. The Summer and Winter of AI In 1955, professors Marvin Minsky (mathematics and neurology) and John McCarthy (mathematics), along with Claude Shannon (a mathematician and cryptographer at Bell Labs) and Nathaniel Rochester (a computer scientist at IBM), proposed a two-month workshop to explore Turing’s work and the promise of machine learning. Their theory: if it was possible to describe every feature of human intelligence, then a machine could be taught to simulate it.17 But it was going to take a broad, diverse group of experts in many different fields.

…

Professors Allen Newell, Herbert Simon, and Cliff Shaw came up with a way to discover proofs of logical theorems and simulated the process by hand—a program they called Logic Theorist—at one of the general sessions. It was the first program to mimic the problem-solving skills of a human. (Eventually, it would go on to prove 38 of the first 52 theorems in Alfred North Whitehead and Bertrand Russell’s Principia Mathematica, a standard text on the foundations of mathematics.) Claude Shannon, who had several years earlier proposed teaching computers to play chess against humans, got the opportunity to show a prototype of his program, which was still under construction.20 McCarthy and Minsky’s expectations for groundbreaking advancements in AI didn’t materialize that summer at Dartmouth. There wasn’t enough time—not to mention enough compute power—to evolve AI from theory to practice.21 However, that summer did set in motion three key practices that became the foundational layer for AI as we know it today: 1.

pages: 350 words: 98,077

**
Artificial Intelligence: A Guide for Thinking Humans
** by
Melanie Mitchell

Ada Lovelace, AI winter, Amazon Mechanical Turk, Apple's 1984 Super Bowl advert, artificial general intelligence, autonomous vehicles, Bernie Sanders, Claude Shannon: information theory, cognitive dissonance, computer age, computer vision, dark matter, Douglas Hofstadter, Elon Musk, en.wikipedia.org, Gödel, Escher, Bach, I think there is a world market for maybe five computers, ImageNet competition, Jaron Lanier, job automation, John Markoff, John von Neumann, Kevin Kelly, Kickstarter, license plate recognition, Mark Zuckerberg, natural language processing, Norbert Wiener, ought to be enough for anybody, pattern recognition, performance metric, RAND corporation, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, Rodney Brooks, self-driving car, sentiment analysis, Silicon Valley, Singularitarianism, Skype, speech recognition, Stephen Hawking, Steve Jobs, Steve Wozniak, Steven Pinker, strong AI, superintelligent machines, theory of mind, There's no reason for any individual to have a computer in his home - Ken Olsen, Turing test, Vernor Vinge, Watson beat the top human players on Jeopardy!

As an undergraduate, he had learned a bit about both psychology and the nascent field of “automata theory” (later to become computer science) and had become intrigued with the idea of creating a thinking machine. In graduate school in the mathematics department at Princeton, McCarthy had met a fellow student, Marvin Minsky, who shared his fascination with the potential of intelligent computers. After graduating, McCarthy had short-lived stints at Bell Labs and IBM, where he collaborated, respectively, with Claude Shannon, the inventor of information theory, and Nathaniel Rochester, a pioneering electrical engineer. Once at Dartmouth, McCarthy persuaded Minsky, Shannon, and Rochester to help him organize “a 2 month, 10 man study of artificial intelligence to be carried out during the summer of 1956.”1 The term artificial intelligence was McCarthy’s invention; he wanted to distinguish this field from a related effort called cybernetics.2 McCarthy later admitted that no one really liked the name—after all, the goal was genuine, not “artificial,” intelligence—but “I had to call it something, so I called it ‘Artificial Intelligence.’”3 The four organizers submitted a proposal to the Rockefeller Foundation asking for funding for the summer workshop.

…

Because of these difficulties, it makes sense that to date the greatest successes of reinforcement learning have been not in robotics but in domains that can be perfectly simulated on a computer. In particular, the best-known reinforcement-learning successes have been in the domain of game playing. Applying reinforcement learning to games is the topic of the next chapter. 9 Game On Since the earliest days of AI, enthusiasts have been obsessed with creating programs that can beat humans at games. In the late 1940s, both Alan Turing and Claude Shannon, two founders of the computer age, wrote programs to play chess before there were even computers that could run their code. In the decades that followed, many a young game fanatic has been driven to learn to program in order to get computers to play their favorite game, whether it be checkers, chess, backgammon, Go, poker, or, more recently, video games. In 2010, a young British scientist and game enthusiast named Demis Hassabis, along with two close friends, launched a company in London called DeepMind Technologies.

…

Furthermore, unlike Samuel’s checkers-playing program, Deep Blue did not use machine learning in any central way. Like Samuel’s checkers player before it, Deep Blue’s defeat of Kasparov spurred a significant increase in IBM’s stock price.16 This defeat also generated considerable consternation in the media about the implications for superhuman intelligence as well as doubts about whether humans would still be motivated to play chess. But in the decades since Deep Blue, humanity has adapted. As Claude Shannon wrote presciently in 1950, a machine that can surpass humans at chess “will force us either to admit the possibility of mechanized thinking or to further restrict our concept of thinking.”17 The latter happened. Superhuman chess playing is now seen as something that doesn’t require general intelligence. Deep Blue isn’t intelligent in any sense we mean today. It can’t do anything but play chess, and it doesn’t have any conception of what “playing a game” or “winning” means to humans.

pages: 272 words: 19,172

**
Hedge Fund Market Wizards
** by
Jack D. Schwager

asset-backed security, backtesting, banking crisis, barriers to entry, beat the dealer, Bernie Madoff, Black-Scholes formula, British Empire, business cycle, buy and hold, Claude Shannon: information theory, cloud computing, collateralized debt obligation, commodity trading advisor, computerized trading, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, delta neutral, diversification, diversified portfolio, Edward Thorp, family office, financial independence, fixed income, Flash crash, hindsight bias, implied volatility, index fund, intangible asset, James Dyson, Jones Act, Long Term Capital Management, margin call, market bubble, market fundamentalism, merger arbitrage, money market fund, oil shock, pattern recognition, pets.com, Ponzi scheme, private sector deleveraging, quantitative easing, quantitative trading / quantitative ﬁnance, Right to Buy, risk tolerance, risk-adjusted returns, risk/return, riskless arbitrage, Rubik’s Cube, Sharpe ratio, short selling, statistical arbitrage, Steve Jobs, systematic trading, technology bubble, transaction costs, value at risk, yield curve

The problem from the regulatory standpoint is that the parking concealed who really owned the positions. 6The basic strategy is a set of rules of when to stand, hit, split, and double, depending on the player’s card and the dealer’s card. For example, the basic strategy indicates standing with 16 if the dealer’s card is between two and six, and hitting otherwise. The basic strategy does not involve any card counting. 7The opening paragraph in the Wikipedia entry for Claude Shannon provides the following synopsis: Claude Elwood Shannon (April 30, 1916–February 24, 2001) was an American mathematician, electronics engineer, and cryptographer known as “the father of information theory.” Shannon is famous for having founded information theory with one landmark paper published in 1948. But he is also credited with founding both digital computer and digital circuit design theory in 1937, when, as a 21-year-old master’s student at MIT, he wrote a thesis demonstrating that electrical application of Boolean algebra could construct and resolve any logical, numerical relationship.

…

Track records such as Thorp’s prove conclusively that it is possible to beat the market and that the large group of economists who insist otherwise are choosing to believe theory over evidence.2 The contention that it is possible to beat the markets, however, does not say anything about the difficulty of the task. In fact, it is the difficulty in beating the market (the vast majority of market participants fail to do so) that helps create the illusion that markets are efficient. Thorp’s career encompasses an extraordinary number of first achievements: He co-developed (along with Claude Shannon) the first wearable computer that could be used to win at roulette. He developed the first blackjack betting strategy that provided a positive edge to the player, which he divulged in his global best seller, Beat the Dealer. The book changed the way casinos operate. Thorp along with Sheen Kassouf developed the first known systematic approach to trading warrants and other convertible securities (e.g., options, convertible bonds, convertible preferred stocks) by hedging them with offsetting stock positions, an approach they detailed in their book, Beat the Market.3 He was the first to formulate an option-pricing model that was equivalent to the Black-Scholes model.

…

The best way to do that was to get it published in the National Academy of Sciences, but you had to find a member who would submit the paper for you or else they wouldn’t take it. I researched the Cambridge area where I was located and found that there were two members. One member was an algebraist at Harvard who wouldn’t have any idea what I was talking about and probably wouldn’t have cared if he did. The other member was Claude Shannon at MIT. Shannon was a joint professor of mathematics and engineering, and one of only two Distinguished Professors at MIT. I went to his secretary and asked if I could get an appointment. She said, “He might see you for five minutes, but he doesn’t talk to people if he is not interested. So don’t expect more than a very brief interview.” Did you know anything about his reputation when you went to see him?

pages: 360 words: 85,321

**
The Perfect Bet: How Science and Math Are Taking the Luck Out of Gambling
** by
Adam Kucharski

Ada Lovelace, Albert Einstein, Antoine Gombaud: Chevalier de Méré, beat the dealer, Benoit Mandelbrot, butterfly effect, call centre, Chance favours the prepared mind, Claude Shannon: information theory, collateralized debt obligation, correlation does not imply causation, diversification, Edward Lorenz: Chaos theory, Edward Thorp, Everything should be made as simple as possible, Flash crash, Gerolamo Cardano, Henri Poincaré, Hibernia Atlantic: Project Express, if you build it, they will come, invention of the telegraph, Isaac Newton, Johannes Kepler, John Nash: game theory, John von Neumann, locking in a profit, Louis Pasteur, Nash equilibrium, Norbert Wiener, p-value, performance metric, Pierre-Simon Laplace, probability theory / Blaise Pascal / Pierre de Fermat, quantitative trading / quantitative ﬁnance, random walk, Richard Feynman, Ronald Reagan, Rubik’s Cube, statistical model, The Design of Experiments, Watson beat the top human players on Jeopardy!, zero-sum game

On one occasion, Thorp failed to come to the door when his in-laws arrived for dinner. They eventually found him inside rolling marbles along the kitchen floor in the midst of an experiment to find out how far each would travel. After completing his PhD, Thorp headed east to work at the Massachusetts Institute of Technology. There he met Claude Shannon, one of the university’s academic giants. Over the previous decade, Shannon had pioneered the field of “information theory,” which revolutionized how data are stored and communicated; the work would later help pave the way for space missions, mobile phones, and the Internet. Thorp told Shannon about the roulette predictions, and the professor suggested they continue the work at his house a few miles outside the city. When Thorp entered Shannon’s basement, it became clear quite how much Shannon liked gadgets.

…

Bet too much, and you risk wiping out your savings on an event that still has only a 50 percent chance of success; bet too little, and you won’t be fully exploiting your advantage. After Thorp put together his winning blackjack system, he turned his attention to the problem of such bankroll management. Given a particular edge over the casino, what was the optimal amount to bet? He found the answer in a formula known as the Kelly criterion. The formula is named after John Kelly, a gunslinging Texan physicist who worked with Claude Shannon in the 1950s. Kelly argued that, in the long run, you should wager a percentage of your bankroll equal to your expected profit divided by the amount you’ll receive if you win. For the coin toss above, the Kelly criterion would be the expected payoff ($0.50) divided by the potential winnings ($2.00). This works out to 0.25, which means you should bet a quarter of your available bankroll. In theory, wagering this amount will ensure good profits while limiting the risk of chipping away at your funds.

…

.), 188 heads-up poker, 172, 186, 188, 195 See also Texas hold’em poker hedge funds, 96, 97, 99–100, 101, 120, 122, 204 hedging bets, 95, 96, 99 Heeb, Randal, 198, 199, 200, 201 Henry, Thierry, 104 Heuer, Andreas, 78 Hibbs, Albert, 3–4, 7, 21 Hibernia Atlantic, 113 Hilbert, David, 150 hockey, 85, 204, 205, 207 Holt, Matthew, 88 Hong Kong Jockey Club, 43, 90 horse racing bankroll management in, 65–67 betting syndicates and, 35, 52–53, 54, 56, 57–58, 64, 66–69, 103, 206 compared to golf, 84 fading of data availability limitations in, 73 favorite-long-shot bias in, 45, 46, 57 gambling law and, 198 and the Hong Kong tracks, 43–44, 54–55, 66–69, 74, 114 measuring individual performance in, 103 and the Monte Carlo method, 61–62 pari-mutuel system in, 43–45, 66, 114 Pinnacle Sports and, 93 prediction methods in, 46, 49–50, 51–54, 55–58, 64, 68, 69, 74, 206, 207, 216, 218 and quality measurement, 50–51, 74 and regression analysis, 49, 50 robotic betting and, 115–117 university courses studying, 215 “How to Gamble If You Must” (MIT course), 213–214 human insight, importance of, 105 human language, analyzing, 166 hybrid bots, 184 hydrogen bomb, 58, 59, 60, 61, 83, 202 IBM, 166–167 iceberg order, 115 ignorance first degree of, 2 second degree of, 3, 8, 11, 21–22 third degree of, 3, 8, 12, 21 illegal betting/gambling, 42, 81–82, 90–91, 101, 198 Illegal Gambling Business Act, 200 illusion, 218 imitation game, 170–171, 177, 194 incompleteness, 150, 168, 173 incompleteness theorem, 150, 176 inconsistencies, 150 Indian Premier League, 90 infinite monkey theorem, 156–157, 199 information theory, 11 information-processing problem, 168 inheritance, 47–49, 51, 106 in-play analysis, 97–98 Internet, benefits of, 72–73 investing, 96, 97–100, 204 See also hedge funds; stock/financial markets Irish National Lottery, 33 Jackson, Eric, 167 Jagger, Joseph, 7 Jennings, Ken, 165–166 Jeopardy! (TV game show), 165–166, 167, 171, 190 Johanson, Michael, 177, 183, 188, 189, 192 Johnson, Neil, 124 Journal of Applied Statistics (journal), 74 Julius, George, 44 Kalashnikov, Mikhail, 83 Kaplan, Michael, 172, 177 Kasparov, Garry, 166, 171, 176, 185 Kelly, John, 65 Kelly criterion, 65–67, 144 Kent, Michael, 79, 80–81, 82, 86–87, 102–103, 105, 107, 167 Kentucky Derby, 43 Keynes, John Maynard, 122, 123 King, Brian, 205 Klein, Matthew, 96 Klincewicz, Stefan, 33–34 Knight Capital, 117–118, 119 Laak, Phil, 185–186, 187 Laplace, Pierre Simon, 217 Larsen, Svend Egil, 119 Las Vegas Sports Consultants, 87–88 Latin square, 24 Le Monaco (newspaper), 5, 7 learning ability, 151, 161, 163, 171–172, 173, 174, 176, 177, 187, 188, 190, 217 legalization, 100–102 Leitner, Christoph, 76 Lickel, Charles, 166 lie detection, 190–191 limited-stakes poker, 172, 177, 185, 187, 189 limits, betting, 22, 140 Liverpool soccer club, 104 logistic map, 125–128 Lorenz, Edward, 9, 53, 124 Lorenz cipher, 26 lotteries betting syndicates and, 30, 31–32, 33–34, 202 consultant for, 141 controlled randomness and, 25–26 loopholes found in, 28, 30, 32, 218 roll downs in, 29–32, 33 rollovers in, 29, 33–34, 204 and roulette, biased view of, 98 scooping up jackpots in, 197 security team, 27 traditional, 28–34 university courses studying, 215 Lovelace, Ada, 175 luck in checkers, 156, 157 in chess, 168, 176, 202 habitual, 202 in life, 216 line between skill and, 204 measuring, 205, 217 notion of, exploring, by studying gambling, 216 in poker, 168, 186, 198, 200, 201, 215 probability and, 98 questioning, 28 rarity of profits coming from, 218 in roulette, 202 runs of, 5 skill versus, debate over, 198–200, 201–202, 203 in sports, 84, 85, 204–205 Ma, Will, 214–215 magic formula, 105 magic trick, 217–218 Maisel, Herbert, 37 Major League Baseball playoffs, 209 major sports, problem with focusing on, 107 Maldini, Paolo, 103 Management Science (journal), 50 Mandelbrot, Benoit, 162 man-machine competitions in checkers, 156, 159, 160 in chess, 166, 171, 176 in poker, 185–187 in TV game shows, 165–166, 171 Man-Machine World Championship, 156 maps as abstractions, 210, 211 logistic, 125–128 Markov, Andrei, 62 Markov chain, 62, 64 Markov chain Monte Carlo technique, 64 Markov property, 62, 63 Martinez, Roberto, 209 Massachusetts State Lottery, 29–32 May, Robert, 13, 125, 127, 128, 129, 131 Mazrooei, Parisa, 182 Mazur, Matt, 192–196 McDermott, James, 37 McHale, Ian, 89 mediocrity, regression to, 205 Mega-Millions, 29 memorizing, 179, 180 memory and competitiveness, 161–162 memory capacity, 179–181 Meston, A.

pages: 306 words: 82,765

**
Skin in the Game: Hidden Asymmetries in Daily Life
** by
Nassim Nicholas Taleb

availability heuristic, Benoit Mandelbrot, Bernie Madoff, Black Swan, Brownian motion, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, cellular automata, Claude Shannon: information theory, cognitive dissonance, complexity theory, David Graeber, disintermediation, Donald Trump, Edward Thorp, equity premium, financial independence, information asymmetry, invisible hand, knowledge economy, loss aversion, mandelbrot fractal, mental accounting, microbiome, moral hazard, Murray Gell-Mann, offshore financial centre, p-value, Paul Samuelson, Ponzi scheme, price mechanism, principal–agent problem, Ralph Nader, random walk, rent-seeking, Richard Feynman, Richard Thaler, Ronald Coase, Ronald Reagan, Rory Sutherland, Silicon Valley, Steven Pinker, stochastic process, survivorship bias, The Nature of the Firm, transaction costs, urban planning, Yogi Berra

For, in the quarter millennia since an initial formulation of decision making under uncertainty by the mathematician Jacob Bernoulli, one that has since become standard, almost all people involved in the field have made the severe mistake of missing the effect of the difference between ensemble and time.fn1 Everyone? Not quite: every economist maybe, but not everyone: the applied mathematicians Claude Shannon and Ed Thorp, and the physicist J. L. Kelly of the Kelly Criterion got it right. They also got it in a very simple way. The father of insurance mathematics, the Swedish applied mathematician Harald Cramér, also got the point. And, more than two decades ago, practitioners such as Mark Spitznagel and myself built our entire business careers around it. (I mysteriously got it right in my writings and when I traded and made decisions, and detect deep inside when ergodicity is violated, but I never explicitly got Peters and Gell-Mann’s mathematical structure—ergodicity is even discussed in Fooled by Randomness, two decades ago).

…

Unless one is a genius, that is, has the clarity of mind to see through the mud, or has a sufficiently profound command of probability theory to cut through the nonsense. Now, certifiably, Murray Gell-Mann is a genius (and, likely, Peters). Gell-Mann discovered the subatomic particles he himself called quarks (which got him the Nobel). Peters said that when he presented the idea to Gell-Mann, “he got it instantly.” Claude Shannon, Ed Thorp, J. L. Kelly, and Harald Cramér are, no doubt, geniuses—I can personally vouch for Thorp, who has an unmistakable clarity of mind combined with a depth of thinking that juts out in conversation. These people could get it without skin in the game. But economists, psychologists, and decision theorists have no geniuses among them (unless one counts the polymath Herb Simon, who did some psychology on the side), and odds are they never will.

…

But you cannot possibly ignore all the other financial risks he is taking: if he has a car parked outside that can be scratched, if he has a financial portfolio that can lose money, if he has a bakery that may risk a fine, if he has a child in college who may cost unexpectedly more, if he can be laid off, if he may be unexpectedly ill in the future. All these risks add up, and the attitude of the subject reflects them all. Ruin is indivisible and invariant to the source of randomness that may cause it. Another common error in the psychology literature concerns what is called “mental accounting.” The Thorp, Kelly, and Shannon school of information theory requires that, for an investment strategy to be ergodic and eventually capture the return of the market, agents increase their risks as they are winning, but contract after losses, a technique called “playing with the house money.” In practice, it is done by threshold, for ease of execution, not complicated rules: you start betting aggressively whenever you have a profit, never when you have a deficit, as if a switch was turned on or off.

**
Concentrated Investing
** by
Allen C. Benello

activist fund / activist shareholder / activist investor, asset allocation, barriers to entry, beat the dealer, Benoit Mandelbrot, Bob Noyce, business cycle, buy and hold, carried interest, Claude Shannon: information theory, corporate governance, corporate raider, delta neutral, discounted cash flows, diversification, diversified portfolio, Edward Thorp, family office, fixed income, high net worth, index fund, John von Neumann, Louis Bachelier, margin call, merger arbitrage, Paul Samuelson, performance metric, random walk, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, shareholder value, Sharpe ratio, short selling, survivorship bias, technology bubble, transaction costs, zero-sum game

The player would wait patiently until the count indicated that the deck was stacked in his or her favor, and then bet heavily. Sure, there would be swings up and down, but over a large number of hands, that edge, properly exploited, would probably allow the player to beat the game. But how heavily should the player bet when he held an edge? And how should he bet when the deck was stacked against him? Thorp discussed his blackjack findings with MIT colleague Claude Shannon, the brilliant mathematician whose 1948 master’s thesis single‐ handedly invented information theory and ushered in the age of the digital circuit and computer. Shannon’s thesis dealt with the transmission of a signal over a noisy line. The problem: Boosting a signal also boosts the noise. How then to transmit a message without losing its meaning due to the signal being misheard or unheard? In grappling with the problem, Shannon’s paper, described as “possibly the most important, and also the most famous master’s thesis of the [twentieth] century,”5 proposed the binary digit, or bit, as the basic unit of information.

…

To make it worthwhile he would need to drive a bus through that tiny crack. He would need to lay down $662.5 million dollars to collect just $2.5 million. How could he justify risking such a titanic sum for such a minuscule payoff? Thorp had a secret. He employed a little-known formula for optimal position sizing—the mysteriously named Kelly Criterion. However he plugged the details of the trade into Kelly’s formula, the answer was unavoidable: Bet the farm. Claude Shannon and Ed Thorp While working as a post‐doctoral researcher at the Massachusetts Institute of Technology (MIT) in November 1960, Thorp submitted an abstract for a talk to the annual meeting of the American Mathematical Society. The abstract, Fortune’s Formula: The Game of Blackjack, described a method for beating the casino at blackjack. It was slated for rejection by the selection committee.2 Every year the American Mathematical Society received submissions from an “endless parade of cranks” who claimed they had done the mathematically impossible.

…

A small bet would avoid a catastrophic loss, but would also fail to capitalize on a rare advantage. What was the optimal bet size to maximize Kelly, Shannon, and Thorp: Mathematical Investors 75 the bettor’s return? Kelly wondered if he could apply Shannon’s information theory to the problem. He discussed it with Shannon, who urged him to publish the work. Kelly’s paper appeared in the 1956 issue of the Bell System Technical Journal under the anodyne title, A New Interpretation of the Information Rate. Kelly had wanted to call the paper Information Theory and Gambling, but some AT&T executives feared that the title and his discussion of a “private wire” would remind readers that AT&T used to lease wires to organized crime figures who ran wire services reporting racetrack results to bookies. Under pressure from AT&T, Kelly changed the title.9 In his paper, Kelly likened the problem to a gambler betting on baseball games—not horse racing, as it is often reported—with a “noiseless” private wire that enabled him to get perfectly accurate results before they became common knowledge.

pages: 329 words: 88,954

**
Emergence
** by
Steven Johnson

A Pattern Language, agricultural Revolution, Brewster Kahle, British Empire, Claude Shannon: information theory, complexity theory, Danny Hillis, Douglas Hofstadter, edge city, epigenetics, game design, garden city movement, Gödel, Escher, Bach, hive mind, Howard Rheingold, hypertext link, invisible hand, Jane Jacobs, Kevin Kelly, late capitalism, Marshall McLuhan, mass immigration, Menlo Park, Mitch Kapor, Murano, Venice glass, Naomi Klein, new economy, New Urbanism, Norbert Wiener, pattern recognition, pez dispenser, phenotype, Potemkin village, price mechanism, profit motive, Ray Kurzweil, slashdot, social intelligence, Socratic dialogue, stakhanovite, Steven Pinker, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, theory of mind, Thomas Kuhn: the structure of scientific revolutions, traveling salesman, trickle-down economics, Turing machine, Turing test, urban planning, urban renewal, Vannevar Bush

Early in his visit to Bell Labs, Turing hit upon the idea of using another Bell invention, the Vocoder—later used by rock musicians such as Peter Frampton to combine the sounds of a guitar and the human voice—as a way of encrypting speech. (By early 1943, Turing’s ideas had enabled the first secure voice transmission to cross the Atlantic, unintelligible to German eavesdroppers.) Bell Labs was the home base for another genius, Claude Shannon, who would go on to found the influential discipline of information theory, and whose work had explored the boundaries between noise and information. Shannon had been particularly intrigued by the potential for machines to detect and amplify patterns of information in noisy communication channels—a line of inquiry that promised obvious value to a telephone company, but could also save thousands of lives in a war effort that relied so heavily on the sending and breaking of codes.

…

Drawing upon research in molecular biology, genetics, physics, computer science, and Shannon’s information theory, Weaver divided the last few centuries of scientific inquiry into three broad camps. First, the study of simple systems: two or three variable problems, such as the rotation of planets, or the connection between an electric current and its voltage and resistance. Second, problems of “disorganized complexity”: problems characterized by millions or billions of variables that can only be approached by the methods of statistical mechanics and probability theory. These tools helped explain not only the behavior of molecules in a gas, or the patterns of heredity in a gene pool, but also helped life insurance companies turn a profit despite their limited knowledge about any individual human’s future health. Thanks to Claude Shannon’s work, the statistical approach also helped phone companies deliver more reliable and intelligible longdistance service.

…

And that learning too will be a kind of emergence, a higher-level order forming out of relatively simple component parts. Five years after his interactions with Turing, Shannon published a long essay in the Bell System Technical Journal that was quickly repackaged as a book called The Mathematical Theory of Communication. Dense with equations and arcane chapter titles such as “Discrete Noiseless Systems,” the book managed to become something of a cult classic, and the discipline it spawned—information theory—had a profound impact on scientific and technological research that followed, on both a theoretical and practical level. The Mathematical Theory of Communication contained an elegant, layman’s introduction to Shannon’s theory, penned by the esteemed scientist Warren Weaver, who had early on grasped the significance of Shannon’s work. Weaver had played a leading role in the Natural Sciences division of the Rockefeller Foundation since 1932, and when he retired in the late fifties, he composed a long report for the foundation, looking back at the scientific progress that had been achieved over the preceding quarter century.

**
The End of Accounting and the Path Forward for Investors and Managers (Wiley Finance)
** by
Feng Gu

active measures, Affordable Care Act / Obamacare, barriers to entry, business cycle, business process, buy and hold, Claude Shannon: information theory, Clayton Christensen, commoditize, conceptual framework, corporate governance, creative destruction, Daniel Kahneman / Amos Tversky, discounted cash flows, disruptive innovation, diversified portfolio, double entry bookkeeping, Exxon Valdez, financial innovation, fixed income, hydraulic fracturing, index fund, information asymmetry, intangible asset, inventory management, Joseph Schumpeter, Kenneth Arrow, knowledge economy, moral hazard, new economy, obamacare, quantitative easing, quantitative trading / quantitative ﬁnance, QWERTY keyboard, race to the bottom, risk/return, Robert Shiller, Robert Shiller, shareholder value, Steve Jobs, The Great Moderation, value at risk

To see that, we first have to explain our emphasis on “new” information in the previous sentence. Why new? Simply, because as far as information usefulness is concerned, newness and timeliness are of the essence. This is a subtle issue that requires elaboration. Pardon the following brief tutorial, aimed at clarifying an important information principle, central to information (communication) theory, which was developed in the 1940s by Claude Shannon and Warren Weaver and played an important role in the development of computers and communication systems.1 The theory provides a measure of the amount of information conveyed by a message. For example: “It will start raining at 3:00 p.m. tomorrow.” This measure is based on the extent of surprise, or unexpectedness of the message to the receiver. If, for example, it is now November in Seattle, and it rained heavily the whole week, a forecast of rain continuation tomorrow isn’t that surprising, implying a low information content of the “rain tomorrow” forecast.

…

For a given information source, we include only events that do not coincide with the events of other information sources (e.g., we exclude managers’ forecasts that occur on the same day as quarterly earnings are announced). Sample firms included in Figure 4.1 are all US-listed companies with the required data, obtained from Compustat, CRSP, I/B/E/S First Call, and the S&P SEC Filings Database. Worse Than at First Sight 49 NOTES 1. Claude Shannon and Warren Weaver, The Mathematical Theory of Communication (Champaign–Urbana: University of Illinois Press, 1949). 2. Mathematically, the amount of information conveyed by a message is measured in communication theory by the logarithm of the ratio of the prior (before the message was received) to the posterior (after the message reception) probabilities of the event (e.g., rain at 3:00 pm tomorrow) occurring.

…

See Book value of equity Subject Index Capitalization 89 Capital lease 222 Capital market-free test 67 Cash burn rate 175 Cash flows analyst prediction 24f concept, accounting impact (intention) 17–18 earnings, domination 18–19 metric 17 prediction, ease 22–24 increase 23f residual cash flows, usage 238f statement 5 strategies, earnings (contrast) 19f Cash flows per share (CPS) 23–24 Causal factors 231–232 Causation, examination 107–108 Cease and desist agreement 174 China National Petroleum, household name 180 Cisco, stockholder equity 126 Claims expenses 154 Coca-Cola assets 83 consumer product business 88 patents 78 Combined ratio 148 increase 150–151 Commission, sins 104 Commodities 78 Communication theory (information theory) 42 Companies balance sheet, inventory account 233 company-related information sources 44 earnings investor reaction 30–31 prediction 16f 8-K filings 106–107 estimates (above-median number), ROE prediction errors (increase) 101f market values 32–33 differences 33 249 patents information 171, 173 portfolios 218 performance prediction, ability (decline) 56–57 prospects, uncertainty (decrease) 65 trademarks, information 171, 173 Comparability 203 Competition enhancement 134 implementation concerns 205–206 Competitive advantage, achievement 120–121, 134 Competitive edge, assessment 232 Complexity.

pages: 268 words: 109,447

**
The Cultural Logic of Computation
** by
David Golumbia

Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, American ideology, Benoit Mandelbrot, borderless world, business process, cellular automata, citizen journalism, Claude Shannon: information theory, computer age, corporate governance, creative destruction, en.wikipedia.org, finite state, future of work, Google Earth, Howard Zinn, IBM and the Holocaust, iterative process, Jaron Lanier, jimmy wales, John von Neumann, Joseph Schumpeter, late capitalism, means of production, natural language processing, Norbert Wiener, packet switching, RAND corporation, Ray Kurzweil, RFID, Richard Stallman, semantic web, Shoshana Zuboff, Slavoj Žižek, social web, stem cell, Stephen Hawking, Steve Ballmer, Stewart Brand, strong AI, supply-chain management, supply-chain management software, Ted Nelson, telemarketer, The Wisdom of Crowds, theory of mind, Turing machine, Turing test, Vannevar Bush, web application

Weaver’s combinatoric argument fails to address Wiener’s chief points, namely that human language is able to manage ambiguity and approximation in a way quite different from the way that computers handle symbols. The persistent belief that philosophical skeptics must be wrong about the potential for machine translation is characteristic of computational thinking from the 1950s to the present. Only Claude Shannon himself—again, a dedicated scientist and engineer with limited experience in the study of language—is accorded authority by Weaver, so that “only Shannon himself, at this stage, can be a good judge of the possibilities in this direction”; remarkably, Weaver suggests that “a book written in Chinese is simply a book written in English which was coded into the ‘Chinese Code’ ” (22). Since we “have useful methods for solving any cryptographic problem, may it not be that with proper interpretation we already have useful methods for translation?”

…

I am not persuaded that inventions like the telephone were aided by patent control; although I would disagree that such inventions are “fundamental” discoveries like physical phenomena such as ﬁre or the division of physical material into elements—discoveries that on any alternative account of human history we were likely to have made at some point. While it is no doubt inevitable that forms of long-distance communication would develop in any plausible human history, I am not persuaded that the exact forms of the telephone, telegraph, etc., are metaphysically necessary. Computation hovers provocatively between invention and discovery. Perhaps some of the most extreme computer scientists (Ray Kurzweil, Stephen Wolfram, Claude Shannon, Konrad Zuse) believe that digital computation in particular is a fundamental part of the physical universe; certainly there is at least some interesting evidence to support this view. At the same time, it seems equally if not more plausible that a wide range of calculating, quasilogical, and simulative mechanisms exist in the physical world, and that digital computation is simply one means of replicating some of these phenomena, perhaps the means that is most available to us for cultural reasons—in other words, we found digital computation because our society is already so oriented toward binarisms, hierarchy, and instrumental rationality.

…

They were examining every aspect of human linguistic and mental activity to ﬁnd formalizable phenomena, because what is formalizable can by deﬁnition be performed by a Turing Machine. Paul Edwards reports on a telling moment in the history of these laboratories: [George] Miller himself marks the year 1956, when he returned to Harvard, as the great transition. In that year his studies of language, information theory, The Cultural Logic of Computation p 36 and behavior crystallized into a new research paradigm. In an unpublished essay, Miller recounts his experience of the second Symposium on Information Theory, held at MIT on September 10–12, 1956. There he had his ﬁrst realization, “more intuitive than rational, that human experimental psychology, theoretical linguistics, and the computer simulation of cognitive processes were all pieces from a larger whole.” At the symposium, Shannon and others gave papers on coding theory in engineering.

pages: 337 words: 103,522

**
The Creativity Code: How AI Is Learning to Write, Paint and Think
** by
Marcus Du Sautoy

3D printing, Ada Lovelace, Albert Einstein, Alvin Roth, Andrew Wiles, Automated Insights, Benoit Mandelbrot, Claude Shannon: information theory, computer vision, correlation does not imply causation, crowdsourcing, data is the new oil, Donald Trump, double helix, Douglas Hofstadter, Elon Musk, Erik Brynjolfsson, Fellow of the Royal Society, Flash crash, Gödel, Escher, Bach, Henri Poincaré, Jacquard loom, John Conway, Kickstarter, Loebner Prize, mandelbrot fractal, Minecraft, music of the spheres, Narrative Science, natural language processing, Netflix Prize, PageRank, pattern recognition, Paul Erdős, Peter Thiel, random walk, Ray Kurzweil, recommendation engine, Rubik’s Cube, Second Machine Age, Silicon Valley, speech recognition, Turing test, Watson beat the top human players on Jeopardy!, wikimedia commons

I think the human code running in our brains has evolved to be hyper-sensitive to abstract structures underpinning the mess of the natural world. When we listen to music or explore creative mathematics, we are being exposed to the purest forms of structure and our bodies respond emotionally, to mark the recognition of this structure against the white noise of everyday life. What accounts for the difference we perceive between a random sequence of notes and a sequence we regard as music? According to the work of Claude Shannon, the father of information theory, part of our response comes down to the fact that a non-random sequence has some algorithm at its base that can compress the data, while the random sequence does not. Music is distinct from noise by virtue of its underlying algorithms. The question is which algorithms will make music that humans feel is worth listening to? Many people will not give up on the idea that music is at some level an emotional response to life’s experiences.

…

It was hard to identify a clear strategy that would help me win. And as more stones were laid down on the board, the game seemed to get more complicated, unlike chess, where as pieces are gradually removed the game starts to simplify. The American Go Association estimates that it would take a number with 300 digits to count the number of games of Go that are legally possible. In chess the computer scientist Claude Shannon estimated that a number with 120 digits (now called the Shannon number) would suffice. These are not small numbers in either case, but they give you a sense of the wide range of possible permutations. I had played a lot of chess as a kid. I enjoyed working through the logical consequences of a proposed move. It appealed to the mathematician that was growing inside me. The tree of possibilities in chess branches in a controlled manner, making it manageable for a computer and even a human to analyse the implications of going down different branches.

…

.: A Mathematician’s Apology 150–1, 155, 178, 245–6, 247, 252 Harry Potter 234, 285, 286, 289 Hassabis, Demis 22–5, 26, 28–9, 39–40, 41–2, 43, 66, 149, 168, 233, 234, 235 Heatherwick, Thomas 234 Hello Games 116 Her (film) 220 hermeneutic code 251 heuristics 171 Hilbert, David 164, 167 Hirst, Damien 118 Hofstadter, Douglas 201, 202, 204, 206, 298 Homo erectus 104 Homo sapiens 104, 231, 288 House of Wisdom, Baghdad 46, 159 Howard, Emily 187, 209 Huang, Aja 32, 33–4 Hubbard, Freddie 214 Hubble Telescope 43 Huet, Pierre 173 Hugo, Victor 213 human code 2–3, 4–5, 6, 20, 36, 80, 87, 103, 105, 125, 133, 142, 203, 230–1, 260, 300, 301; AI and extending the 298–9; AI and picking up traits in 87–8, 98, 142–5; data and 91–2, 95; evolution of 298–9; free will and 112–13 Hume, David: Treatise on Human Nature 173, 182–3 Hut, Piet 29 IBM 196, 260–7; DeepBlue 29, 214, 260–1; DeepQA Project 267–8; Watson 261–8 ICA 118–19 imaginary numbers 12, 246 Imperial College London 291 Impressionism 13, 138 inceptionism 145 induction 173, 174–5 information theory 203 Ingels, Bjarke 234 Instagram 77 Institute for Advanced Study, Princeton 182, 184 intelligence, solving 98 intentional stance 147 Internet Movie Database 88 intuition 7, 18, 20–1, 61, 91, 151, 153, 154 James, Henry 245 Java, island of 104 jazz/musical improvisation 201, 213–14 218–21, 238, 286, 298, 299 Jennings, Ken 261, 262, 263, 266 Jeopardy! (game show) 260–7, 273 Jie Shan 56 Jockers, Matthew 283 Jones, Jonathan 129–30, 148 Joyce, James 11 Jukedeck 225–6 Jung, Carl 81, 100 kabbalah 207–8 Kafka, Franz 274, 289, 290 Kahana, Eran 109 Kant, Immanuel 4, 105 Kapoor, Anish 118 Kasparov, Garry 29, 260–1 Kazemi, Darius 282 Keats, John 281 Ke Jie 42–3 Kepler’s Conjecture 170 Kerner, Winifred 201 K-456 (robot) 119 Kinect 72–6, 79, 81–2 Klee, Paul 18, 123, 134; Pedagogical Sketchbook 134 Knipe, Adolphe 276–7 Kolof, Lorenz Mizler von 185, 193, 208 Korsten, Bas 129 Kurzweil, Ray 280–1 LabSix 77–8 Laird, Benjamin 281–2 Lampard, Frank 55 language 254–75; Chinese Room experiment and 273–5; ELIZA and 255–7, 259; encryption, algorithms create language to aide 272–3; Jeopardy!

pages: 407 words: 104,622

**
The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution
** by
Gregory Zuckerman

affirmative action, Affordable Care Act / Obamacare, Albert Einstein, Andrew Wiles, automated trading system, backtesting, Bayesian statistics, beat the dealer, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, blockchain, Brownian motion, butter production in bangladesh, buy and hold, buy low sell high, Claude Shannon: information theory, computer age, computerized trading, Credit Default Swap, Daniel Kahneman / Amos Tversky, diversified portfolio, Donald Trump, Edward Thorp, Elon Musk, Emanuel Derman, endowment effect, Flash crash, George Gilder, Gordon Gekko, illegal immigration, index card, index fund, Isaac Newton, John Meriwether, John Nash: game theory, John von Neumann, Loma Prieta earthquake, Long Term Capital Management, loss aversion, Louis Bachelier, mandelbrot fractal, margin call, Mark Zuckerberg, More Guns, Less Crime, Myron Scholes, Naomi Klein, natural language processing, obamacare, p-value, pattern recognition, Peter Thiel, Ponzi scheme, prediction markets, quantitative hedge fund, quantitative trading / quantitative ﬁnance, random walk, Renaissance Technologies, Richard Thaler, Robert Mercer, Ronald Reagan, self-driving car, Sharpe ratio, Silicon Valley, sovereign wealth fund, speech recognition, statistical arbitrage, statistical model, Steve Jobs, stochastic process, the scientific method, Thomas Bayes, transaction costs, Turing machine

Berlekamp had little trouble navigating most of his classes. One year, he received eight As in a single semester and a 4.9 grade point average (on a 5.0 scale), weighed down by a single C in humanities. After winning a prestigious mathematics competition in his senior year to become a Putnam Fellow, Berlekamp began a PhD program at MIT. He focused on electrical engineering, studying with Peter Elias and Claude Shannon. Elias and Shannon were pioneers of information theory, the groundbreaking approach to quantifying, encoding, and transmitting telephone signals, text, pictures, and other kinds of information that would provide the underpinnings for computers, the internet, and all digital media. One afternoon, Shannon passed Berlekamp in the school’s hallway. The thin, five-foot-ten-inch professor was a notorious introvert, so Berlekamp had to think fast to try to grab his attention.

…

In the 1970s, a Berkeley economics professor named Barr Rosenberg developed quantitative models to track the factors influencing stocks. Rather than make a fortune trading himself, Rosenberg sold computerized programs to help other investors forecast stock behavior. Edward Thorp became the first modern mathematician to use quantitative strategies to invest sizable sums of money. Thorp was an academic who had worked with Claude Shannon, the father of information theory, and embraced the proportional betting system of John Kelly, the Texas scientist who had influenced Elwyn Berlekamp. First, Thorp applied his talents to gambling, gaining prominence for his large winnings as well as his bestselling book, Beat the Dealer. The book outlined Thorp’s belief in systematic, rules-based gambling tactics, as well as his insight that players can take advantage of shifting odds within games of chance.

…

Several years earlier, Kelly had published a paper describing a system he’d developed to analyze information transmitted over networks, a strategy that also worked for making various kinds of wagers. To illustrate his ideas, Kelly developed a method he had devised to profit at the racetrack. Kelly’s system proposed ideal bets if one somehow obtained enough information to disregard the posted odds and could instead rely on a more accurate set of probabilities—the “true odds” for each race. Kelly’s formula had grown out of Shannon’s earlier work on information theory. Spending evenings at Kelly’s home playing bridge and discussing science, math, and more, Berlekamp came to see the similarities between betting on horses and investing in stocks, given that chance plays a huge role in both. They also discussed how accurate information and properly sized wagers can provide one with an advantage. Kelly’s work underscored the importance of sizing one’s bets, a lesson Berlekamp would draw on later in life.

pages: 634 words: 185,116

**
From eternity to here: the quest for the ultimate theory of time
** by
Sean M. Carroll

Albert Einstein, Albert Michelson, anthropic principle, Arthur Eddington, Brownian motion, cellular automata, Claude Shannon: information theory, Columbine, cosmic microwave background, cosmological constant, cosmological principle, dark matter, dematerialisation, double helix, en.wikipedia.org, gravity well, Harlow Shapley and Heber Curtis, Henri Poincaré, Isaac Newton, Johannes Kepler, John von Neumann, Lao Tzu, Laplace demon, lone genius, low earth orbit, New Journalism, Norbert Wiener, pets.com, Pierre-Simon Laplace, Richard Feynman, Richard Stallman, Schrödinger's Cat, Slavoj Žižek, Stephen Hawking, stochastic process, the scientific method, wikimedia commons

There’s nothing wrong with that; after all, Boltzmann and Gibbs were proposing definitions to supercede Clausius’s perfectly good definition of entropy, which is still used today under the rubric of “thermodynamic” entropy. After quantum mechanics came on the scene, John von Neumann proposed a formula for entropy that is specifically adapted to the quantum context. As we’ll discuss in the next chapter, Claude Shannon suggested a definition of entropy that was very similar in spirit to Gibbs’s, but in the framework of information theory rather than physics. The point is not to find the one true definition of entropy; it’s to come up with concepts that serve useful functions in the appropriate contexts. Just don’t let anyone bamboozle you by pretending that one definition or the other is the uniquely correct meaning of entropy. Just as there are many definitions of entropy, there are many different “arrows of time,” another source of potential bamboozlement.

…

To be clear: In the final analysis, none of these thought experiments are letting us violate the Second Law. Rather, they provide ways that we could appear to violate the Second Law, if we didn’t properly account for the crucial role played by information. The information collected and processed by the Demon must somehow be accounted for in any consistent story of entropy. The concrete relationship between entropy and information was developed in the 1940s by Claude Shannon, an engineer/mathematician working for Bell Labs.153 Shannon was interested in finding efficient and reliable ways of sending signals across noisy channels. He had the idea that some messages carry more effective information than others, simply because the message is more “surprising” or unexpected. If I tell you that the Sun is going to rise in the East tomorrow morning, I’m not actually conveying much information, because you already expected that was going to happen.

…

See also Prigogine (1955), Kauffman (1993), and Avery (2003). 160 A good recent book is Nelson (2007). 161 He would have been even more wary in modern times; a Google search on “free energy” returns a lot of links to perpetual-motion schemes, along with some resources on clean energy. 162 Informally speaking, the concepts of “useful” and “useless” energy certainly predate Gibbs; his contribution was to attach specific formulas to the ideas, which were later elaborated on by German physicist Hermann von Helmholtz. In particular, what we are calling the “useless” energy is (in Helmholtz’s formulation) simply the temperature of the body times its entropy. The free energy is then the total internal energy of the body minus that quantity. 163 In the 1950s, Claude Shannon built “The Ultimate Machine,” based on an idea by Marvin Minsky. In its resting state, the machine looked like a box with a single switch on one face. If you were to flip the switch, the box would buzz loudly. Then the lid would open and a hand would reach out, flipping the switch back to its original position, and retreat back into the box, which became quiet once more. One possible moral of which is: Persistence can be a good in its own right. 164 Specifically, more massive organisms—which typically have more moving parts and are correspondingly more complex—consume free energy at a higher rate per unit mass than less massive organisms.

pages: 460 words: 107,712

**
A Devil's Chaplain: Selected Writings
** by
Richard Dawkins

Albert Einstein, Alfred Russel Wallace, Buckminster Fuller, butterfly effect, Claude Shannon: information theory, complexity theory, Desert Island Discs, double helix, Douglas Hofstadter, epigenetics, experimental subject, Fellow of the Royal Society, gravity well, Necker cube, out of africa, phenotype, placebo effect, random walk, Richard Feynman, Silicon Valley, stem cell, Stephen Hawking, the scientific method

Rather than engage in further recriminations and disputes about exactly what happened at the time of the interview, I shall try to redress the matter now in constructive fashion by answering the original question, the ‘Information Challenge’, at adequate length – the sort of length you can achieve in a proper article. The technical definition of ‘information’ was introduced by the American engineer Claude Shannon in 1948. An employee of the Bell Telephone Company, Shannon was concerned to measure information as an economic commodity. It is costly to send messages along a telephone line. Much of what passes in a message is not information: it is redundant. You could save money by recoding the message to remove the redundancy. Redundancy was a second technical term introduced by Shannon, as the inverse of information.

…

You could spend a lifetime reading in this ancient library and die unsated by the wonder of it. 1 See ‘Unfinished Correspondence with a Darwinian Heavyweight’ (pp. 256–62). 2 The producers never deigned to send me a copy: I completely forgot about it until an American colleague called it to my attention. 3 See Barry Williams, ‘Creationist deception exposed’, the Skeptic 18 (1998), 3, pp. 7–10, for an account of how my long pause (trying to decide whether to throw them out) was made to look like hesitant inability to answer the question, followed by an apparently evasive answer to a completely different question. 4 It is important not to blame Shannon for my verbal and intuitive way of expressing what I think of as the essence of his idea. Mathematical readers should go straight to the original, C. Shannon and W. Weaver, The Mathematical Theory of Communication (University of Illinois Press, 1949). Claude Shannon, by the way, had an imaginative sense of humour. He once built a box with a single switch on the outside. If you threw the switch, the lid of the box slowly opened, a mechanical hand appeared, reached down and switched off the box. It then put itself away and the lid closed. As Arthur C. Clarke said, ‘There is something unspeakably sinister about a machine that does nothing – absolutely nothing – except switch itself off.’ 5 These round figures are all decimal approximations.

…

When the prior uncertainty is some mixture of alternatives that are not equiprobable, Shannon’s formula becomes a slightly more elaborate weighted average, but it is essentially similar. By the way, Shannon’s weighted average is the same formula as physicists have used, since the nineteenth century, for entropy. The point has interesting implications but I shall not pursue them here.8 That’s enough background on information theory. It is a theory which has long held a fascination for me, and I have used it in several of my research papers over the years. Let’s now think how we might use it to ask whether the information content of genomes increases in evolution. First, recall the three-way distinction between total information capacity, the capacity that is actually used, and the true information content when stored in the most economical way possible.

pages: 396 words: 112,748

**
Chaos: Making a New Science
** by
James Gleick

Benoit Mandelbrot, business cycle, butterfly effect, cellular automata, Claude Shannon: information theory, discrete time, Edward Lorenz: Chaos theory, experimental subject, Georg Cantor, Henri Poincaré, Isaac Newton, iterative process, John von Neumann, Louis Pasteur, mandelbrot fractal, Murray Gell-Mann, Norbert Wiener, pattern recognition, Richard Feynman, Stephen Hawking, stochastic process, trade route

Ottino and others with real fluids, the process of mixing—ubiquitous in nature and industry, yet still poorly understood—proved intimately bound up with the mathematics of chaos. The patterns revealed a stretching and folding that led back to the horseshoe map of Smale. THE MOST CHARACTERISTICALLY Santa Cruzian imprint on chaos research involved a piece of mathematics cum philosophy known as information theory, invented in the late 1940s by a researcher at the Bell Telephone Laboratories, Claude Shannon. Shannon called his work “The Mathematical Theory of Communication,” but it concerned a rather special quantity called information, and the name information theory stuck. The theory was a product of the electronic age. Communication lines and radio transmissions were carrying a certain thing, and computers would soon be storing this same thing on punch cards or magnetic cylinders, and the thing was neither knowledge nor meaning.

…

I knew hardly anything about Richard Feynman, but he has a cameo here (see here). Isaac Newton has more than a cameo: he seems to be the antihero of chaos, or the god to be overthrown. I discovered only later, reading his notebooks and letters, how wrong I’d been about him. And for twenty years I’ve been pursuing a thread that began with something Rob Shaw told me, about chaos and information theory, as invented by Claude Shannon. Chaos is a creator of information—another apparent paradox. This thread connects with something Bernardo Hubemian said: that he was seeing complex behaviors emerge unexpectedly in information networks. Something was dawning, and we’re finally starting to see what it is. James Gleick Key West February 2008 Notes on Sources and Further Reading THIS BOOK DRAWS on the words of about two hundred scientists, in public lectures, in technical writing, and most of all in interviews conducted from April 1984 to December 1986.

…

Because information was stored in binary on-off switches newly designated as bits, bits became the basic measure of information. From a technical point of view, information theory became a handle for grasping how noise in the form of random errors interfered with the flow of bits. It gave a way of predicting the necessary carrying capacity of communication lines or compact disks or any technology that encoded language, sounds, or images. It offered a theoretical means of reckoning the effectiveness of different schemes for correcting errors—for example, using some bits as checks on others. It put teeth into the crucial notion of “redundancy.” In terms of Shannon’s information theory, ordinary language contains greater than fifty percent redundancy in the form of sounds or letters that are not strictly necessary to conveying a message.

pages: 406 words: 109,794

**
Range: Why Generalists Triumph in a Specialized World
** by
David Epstein

Airbnb, Albert Einstein, Apple's 1984 Super Bowl advert, Atul Gawande, Checklist Manifesto, Claude Shannon: information theory, Clayton Christensen, clockwork universe, cognitive bias, correlation does not imply causation, Daniel Kahneman / Amos Tversky, deliberate practice, Exxon Valdez, Flynn Effect, Freestyle chess, functional fixedness, game design, Isaac Newton, Johannes Kepler, knowledge economy, lateral thinking, longitudinal study, Louis Pasteur, Mark Zuckerberg, medical residency, meta analysis, meta-analysis, Mikhail Gorbachev, Nelson Mandela, Netflix Prize, pattern recognition, Paul Graham, precision agriculture, prediction markets, premature optimization, pre–internet, random walk, randomized controlled trial, retrograde motion, Richard Feynman, Richard Feynman: Challenger O-ring, Silicon Valley, Stanford marshmallow experiment, Steve Jobs, Steve Wozniak, Steven Pinker, Walter Mischel, Watson beat the top human players on Jeopardy!, Y Combinator, young professional

Simonton, “Creativity and Expertise: Creators Are Not Equivalent to Domain-Specific Experts!,” in The Science of Expertise, ed. D. Hambrick et al. (New York: Routledge, 2017 [Kindle ebook]). “When we were designing”: Steve Jobs’s 2005 commencement address at Stanford: https://news.stanford.edu/2005/06/14/jobs-061505. “no one else was familiar”: J. Horgan, “Claude Shannon: Tinkerer, Prankster, and Father of Information Theory,” IEEE Spectrum 29, no. 4 (1992): 72–75. For more depth on Shannon, see J. Soni and R. Goodman, A Mind at Play (New York: Simon & Schuster, 2017). “career streams”; “traveled on an eight-lane highway”: C. J. Connolly, “Transition Expertise: Cognitive Factors and Developmental Processes That Contribute to Repeated Successful Career Transitions Amongst Elite Athletes, Musicians and Business People” (PhD thesis, Brunel University, 2011).

…

Those findings are reminiscent of a speech Steve Jobs gave, in which he famously recounted the importance of a calligraphy class to his design aesthetics. “When we were designing the first Macintosh computer, it all came back to me,” he said. “If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts.” Or electrical engineer Claude Shannon, who launched the Information Age thanks to a philosophy course he took to fulfill a requirement at the University of Michigan. In it, he was exposed to the work of self-taught nineteenth-century English logician George Boole, who assigned a value of 1 to true statements and 0 to false statements and showed that logic problems could be solved like math equations. It resulted in absolutely nothing of practical importance until seventy years after Boole passed away, when Shannon did a summer internship at AT&T’s Bell Labs research facility.

pages: 374 words: 114,600

**
The Quants
** by
Scott Patterson

Albert Einstein, asset allocation, automated trading system, beat the dealer, Benoit Mandelbrot, Bernie Madoff, Bernie Sanders, Black Swan, Black-Scholes formula, Blythe Masters, Bonfire of the Vanities, Brownian motion, buttonwood tree, buy and hold, buy low sell high, capital asset pricing model, centralized clearinghouse, Claude Shannon: information theory, cloud computing, collapse of Lehman Brothers, collateralized debt obligation, commoditize, computerized trading, Credit Default Swap, credit default swaps / collateralized debt obligations, diversification, Donald Trump, Doomsday Clock, Edward Thorp, Emanuel Derman, Eugene Fama: efficient market hypothesis, fixed income, Gordon Gekko, greed is good, Haight Ashbury, I will remember that I didn’t make the world, and it doesn’t satisfy my equations, index fund, invention of the telegraph, invisible hand, Isaac Newton, job automation, John Meriwether, John Nash: game theory, Kickstarter, law of one price, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, margin call, merger arbitrage, money market fund, Myron Scholes, NetJets, new economy, offshore financial centre, old-boy network, Paul Lévy, Paul Samuelson, Ponzi scheme, quantitative hedge fund, quantitative trading / quantitative ﬁnance, race to the bottom, random walk, Renaissance Technologies, risk-adjusted returns, Robert Mercer, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Sergey Aleynikov, short selling, South Sea Bubble, speech recognition, statistical arbitrage, The Chicago School, The Great Moderation, The Predators' Ball, too big to fail, transaction costs, value at risk, volatility smile, yield curve, éminence grise

The freshly minted mathematics professor shuddered, and his nerves jangled at the very thought of sitting down face-to-face with Claude Shannon. Few figures at MIT were more intimidating. Shannon was the brains behind two of the twentieth century’s greatest intellectual advances. The first was the application of the binary number system to electronic circuits, which laid the groundwork for the birth of the computer. Shannon’s great breakthrough had been to take a two-symbol logic in which problems are resolved by the manipulation of two numbers, 1 and 0, and apply it to a circuit in which a 1 is represented by a switch that is turned on and a 0 by a switch that is turned off. Sequences of on and off switches—essentially strings of 1s and 0s—could represent nearly any kind of information. Shannon was also a founding father of information theory: how to encode information and transmit it from point A to point B.

…

In 1985, Ax moved the operation to Huntington Beach, California. Axcom was to act as the trading advisor for the fund, which was nominally run as an investing firm owned by a company Simons had founded in July 1982 called Renaissance Technologies. Soon Simons’s growing crew of quants added another math wizard, Elwyn Berlekamp, a game theory expert at Berkeley. Like Ed Thorp, Berlekamp had worked with Claude Shannon and John Kelly at MIT. He’d briefly met Simons during a stint at IDA in the 1960s. The fund put up solid returns for several years, even managing to trade through Black Monday with relatively little damage. In 1988, Ax and Simons renamed the fund Medallion in honor of a math award they’d both won. Almost as soon as they’d renamed the fund, things started going south for Medallion. In the second half of 1988, losses were piling up, and getting steeper every month.

…

“Continue.” Several hours later, Thorp left Shannon’s office into the darkening November night. Thorp started paying regular visits to Shannon’s home later that November as the two scientists set to work on the roulette problem. Shannon called his home “Entropy House,” a nod to a core concept in information theory, borrowed from the second law of thermodynamics. The law of entropy essentially means everything in the universe will eventually turn into a homogenous, undifferentiated goop. In information theory, Shannon used entropy as a way to discover order within the apparent chaos of strings of seemingly random numbers. Shannon’s three-story wooden house overlooked the Mystic Lakes, several miles northwest of Cambridge. One look indoors told Thorp why Shannon likened it to a theory about the inexorable slide of the universe into utter randomness.

pages: 429 words: 114,726

**
The Computer Boys Take Over: Computers, Programmers, and the Politics of Technical Expertise
** by
Nathan L. Ensmenger

barriers to entry, business process, Claude Shannon: information theory, computer age, deskilling, Donald Knuth, Firefox, Frederick Winslow Taylor, future of work, Grace Hopper, informal economy, information retrieval, interchangeable parts, Isaac Newton, Jacquard loom, job satisfaction, John von Neumann, knowledge worker, loose coupling, new economy, Norbert Wiener, pattern recognition, performance metric, Philip Mirowski, post-industrial society, Productivity paradox, RAND corporation, Robert Gordon, Shoshana Zuboff, sorting algorithm, Steve Jobs, Steven Levy, the market place, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, Turing machine, Von Neumann architecture, Y2K

In 1965, the ACM Curriculum Committee attempted to bring unity to computer science by defining it in terms of a single fundamental unit of analysis: computer science “is concerned with information in much the same sense that physics is concerned with energy; it is devoted to the representation, storage, manipulation, and presentation of information.”60 This redefinition of computer science around the study of information offered several immediate benefits. Not only did it lay claim to the valuable intellectual territory suggested by the commonsense understanding of information as knowledge or data but it also linked the discipline to the specific formulation of information developed in the late 1940s by the mathematician Claude Shannon. In his seminal book with Warren Weaver from 1949, A Mathematical Theory of Communication, Shannon had defined information in terms of the physical concept of negative entropy.61 His information theory appealed to scientists in a wide variety of disciplines, and for a time it appeared as if information might serve as a broadly unifying concept in the sciences.62 But despite its intellectual appeal, Shannon’s mathematical definition of information was never widely applicable outside of communications engineering.

…

Atchison and Hamblen, “Status of Computer Sciences Curricula in Colleges and Universities.” 59. Michael Mahoney, “Software as Science–Science as Software,” in Mapping the History of Computing: Software Issues, ed. Ulf Hashagen, Reinhard Keil-Slawik, and Arthur Norberg (Berlin: Springer-Verlag, 2002), 25–48. 60. ACM Curriculum Committee, “An Undergraduate Program in Computer Science.” 61. Claude Shannon and Warren Weaver, A Mathematical Theory of Communication (Urbana: University of Illinois Press, 1949). 62. Lily Kay, “Who Wrote the Book of Life? Information and the Transformation of Molecular Biology,” Science in Context 8 (1995): 609–634; Ronald Kline, “Cybernetics, Management Science, and Technology Policy: The Emergence of ‘Information Technology’ as a Keyword, 1948–1985,” Technology and Culture 47, no. 3 (2006): 513–535. 63.

pages: 397 words: 110,130

**
Smarter Than You Think: How Technology Is Changing Our Minds for the Better
** by
Clive Thompson

4chan, A Declaration of the Independence of Cyberspace, augmented reality, barriers to entry, Benjamin Mako Hill, butterfly effect, citizen journalism, Claude Shannon: information theory, conceptual framework, corporate governance, crowdsourcing, Deng Xiaoping, discovery of penicillin, disruptive innovation, Douglas Engelbart, Douglas Engelbart, drone strike, Edward Glaeser, Edward Thorp, en.wikipedia.org, experimental subject, Filter Bubble, Freestyle chess, Galaxy Zoo, Google Earth, Google Glasses, Gunnar Myrdal, Henri Poincaré, hindsight bias, hive mind, Howard Rheingold, information retrieval, iterative process, jimmy wales, Kevin Kelly, Khan Academy, knowledge worker, lifelogging, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Netflix Prize, Nicholas Carr, Panopticon Jeremy Bentham, patent troll, pattern recognition, pre–internet, Richard Feynman, Ronald Coase, Ronald Reagan, Rubik’s Cube, sentiment analysis, Silicon Valley, Skype, Snapchat, Socratic dialogue, spaced repetition, superconnector, telepresence, telepresence robot, The Nature of the Firm, the scientific method, The Wisdom of Crowds, theory of mind, transaction costs, Vannevar Bush, Watson beat the top human players on Jeopardy!, WikiLeaks, X Prize, éminence grise

He was frustrated by a paradox in note taking: Whenever he wrote a note, he stopped paying attention to the professor and risked missing out on new information. But if he didn’t take notes? He’d have nothing to study from. He wanted to split the difference—to have a computer that was so integrated into his body and his field of vision that he could keep looking at the lecturer while he typed. Starner knew about similar prototypes. The first wearable was cocreated in 1960 by Claude Shannon, the founder of information theory, for a purpose both whimsical and mathematically ambitious: He wanted to beat the Las Vegas roulette wheels. Using sensors built into his shoes, Shannon would “type” information about how the wheel had been spun, and a circuit in his pocket would send beeps to an earpiece telling him how to bet. (The question of whether wearable computing constitutes amplified smarts or blatant cheating hinges, I suppose, on whether you identify with the casino owner or the players.)

…

Perlow describes similarly positive effects in Sleeping with Your Smartphone (Boston: Harvard Business Press, 2012), in documenting how a group of consultants with the Boston Consulting Group agreed to stay off their devices for a set number of hours per day, which they called predictable time off, and which in saner times was referred to as evenings and weekends. “an overarching ability to watch and understand your own mind”: Maggie Jackson and Bill McKibben, Distracted: The Erosion of Attention and the Coming Dark Age (Amherst, NY: Prometheus Books, 2008), Kindle edition. The first wearable was cocreated in 1960 by Claude Shannon: Edward O. Thorp, “The Invention of the First Wearable Computer,” Proceedings of the 2nd IEEE International Symposium on Wearable Computers (1998): 4–8, accessed March 23, 2013, graphics.cs.columbia.edu/courses/mobwear/resources/thorp-iswc98.pdf. Critics have already noted how unsettling it might feel: Mark Hurst, “The Google Glass Feature No One Is Talking About,” Creative Good (blog), February 28, 2013, accessed March 24, 2013, creativegood.com/blog/the-google-glass-feature-no-one-is-talking-about/; Adrian Chen, “If You Wear Google’s New Glasses You Are an Asshole,” Gawker, March 3, 2013, accessed March 24, 2013, http://gawker.com/5990395.

pages: 413 words: 119,587

**
Machines of Loving Grace: The Quest for Common Ground Between Humans and Robots
** by
John Markoff

"Robert Solow", A Declaration of the Independence of Cyberspace, AI winter, airport security, Apple II, artificial general intelligence, Asilomar, augmented reality, autonomous vehicles, basic income, Baxter: Rethink Robotics, Bill Duvall, bioinformatics, Brewster Kahle, Burning Man, call centre, cellular automata, Chris Urmson, Claude Shannon: information theory, Clayton Christensen, clean water, cloud computing, collective bargaining, computer age, computer vision, crowdsourcing, Danny Hillis, DARPA: Urban Challenge, data acquisition, Dean Kamen, deskilling, don't be evil, Douglas Engelbart, Douglas Engelbart, Douglas Hofstadter, Dynabook, Edward Snowden, Elon Musk, Erik Brynjolfsson, factory automation, From Mathematics to the Technologies of Life and Death, future of work, Galaxy Zoo, Google Glasses, Google X / Alphabet X, Grace Hopper, Gunnar Myrdal, Gödel, Escher, Bach, Hacker Ethic, haute couture, hive mind, hypertext link, indoor plumbing, industrial robot, information retrieval, Internet Archive, Internet of things, invention of the wheel, Jacques de Vaucanson, Jaron Lanier, Jeff Bezos, job automation, John Conway, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, knowledge worker, Kodak vs Instagram, labor-force participation, loose coupling, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, medical residency, Menlo Park, Mitch Kapor, Mother of all demos, natural language processing, new economy, Norbert Wiener, PageRank, pattern recognition, pre–internet, RAND corporation, Ray Kurzweil, Richard Stallman, Robert Gordon, Rodney Brooks, Sand Hill Road, Second Machine Age, self-driving car, semantic web, shareholder value, side project, Silicon Valley, Silicon Valley startup, Singularitarianism, skunkworks, Skype, social software, speech recognition, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, strong AI, superintelligent machines, technological singularity, Ted Nelson, telemarketer, telepresence, telepresence robot, Tenerife airport disaster, The Coming Technological Singularity, the medium is the message, Thorstein Veblen, Turing test, Vannevar Bush, Vernor Vinge, Watson beat the top human players on Jeopardy!, Whole Earth Catalog, William Shockley: the traitorous eight, zero-sum game

He found that another graduate student was a double agent in their games, plotting with McCarthy against Nash while at the same time plotting with Nash against McCarthy. Game theory was in fashion at the time and Nash later received his Nobel Prize in economics for contributions to that field. During the summer of 1952 both McCarthy and Minsky were hired as research assistants by mathematician and electrical engineer Claude Shannon at Bell Labs. Shannon, known as the father of “information theory,” had created a simple chess-playing machine in 1950, and there was early interest in biological-growth simulating programs known as “automata,” of which John Conway’s 1970 Game of Life would become the most famous. Minsky was largely distracted by his impending wedding, but McCarthy made the most of his time at Bell Labs, working with Shannon on a collection of mathematical papers that was named at Shannon’s insistence Automata Studies.11 Using the word “automata” was a source of frustration for McCarthy because it shifted the focus of the submitted papers away from the more concrete artificial intelligence ideas and toward more esoteric mathematics.

…

In contrast, Turkle describes a world in which computer networks increasingly drive a wedge between humans, leaving them lonely and isolated. For Weizenbaum, computing systems risked fundamentally diminishing the human experience. In very much the same vein that Marxist philosopher Herbert Marcuse attacked advanced industrial society, he was concerned that the approaching Information Age might bring about a “One-Dimensional Man.” In the wake of the creation of Eliza, a group of MIT scientists, including information theory pioneer Claude Shannon, met in Concord, Massachusetts, to discuss the social implications of the phenomenon.8 The seductive quality of the interactions with Eliza concerned Weizenbaum, who believed that an obsessive reliance on technology was indicative of a moral failing in society, an observation rooted in his experiences as a child growing up in Nazi Germany. In 1976, he sketched out a humanist critique of computer technology in his book Computer Power and Human Reason: From Judgment to Calculation.

pages: 236 words: 50,763

**
The Golden Ticket: P, NP, and the Search for the Impossible
** by
Lance Fortnow

Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, Andrew Wiles, Claude Shannon: information theory, cloud computing, complexity theory, Donald Knuth, Erdős number, four colour theorem, Gerolamo Cardano, Isaac Newton, Johannes Kepler, John von Neumann, linear programming, new economy, NP-complete, Occam's razor, P = NP, Paul Erdős, Richard Feynman, Rubik’s Cube, smart grid, Stephen Hawking, traveling salesman, Turing machine, Turing test, Watson beat the top human players on Jeopardy!, William of Occam

The satisfiability problem that started off chapter 4 asks about logical formulas combining the basic operations of AND, OR, and NOT. We can actually express computation as a series of AND, OR, and NOT operations. Some problems need only a small “circuit” of ANDs, ORs, and NOTs and others require huge circuits to compute. Sergey Yablonsky in the early 1950s investigated this notion of what we now call circuit complexity. Claude Shannon, an American who founded the field of information theory, showed that some logical functions require very high circuit complexity. Yablonsky looked at the difficulty of generating such functions. This sounds like a difficult task, but actually a strong version of P ≠ NP would mean that some simple-to-state search problems do not have small circuits that compute them. Yablonsky first noted that by Shannon’s results, randomly generated functions have near maximal circuit complexity.

…

Diffie and Hellman realized that computers could make complex protocols cheaply available as software, but computers also brought new challenges. Computer-to-computer networks would become commonplace, and efficient and low-cost methods to secure communication over these networks would be needed. Talking about the development of the P versus NP problem earlier that decade, Diffie and Hellman stated, “At the same time, theoretical developments in information theory and computer science show promise of providing probably secure cryptosystems, changing this ancient art into a science.” Before Diffie and Hellman, to decrypt a secret message you needed the same key as the one used to encrypt the message. Both parties would have to meet in advance to agree on a secret key. If a general needed to send a message to a lieutenant in the field using Enigma machines, they both had to know the settings for that machine, particularly how the rotors were initially set at the beginning of the message.

…

Chapter 8 My account of the early history of cryptography draws heavily on David Kahn’s work, The Codebreakers: The Story of Secret Writing (New York: Macmillan, 1967). Zero-Knowledge Sudoku examples are taken from an August 3, 2006, post on my blog, Computational Complexity (http://blog.computationalcomplexity.org/2006/08/zero-knowledge-sudoku.html). Works Cited Whitfield Diffie and Martin Hellman, “New Directions in Cryptography,” IEEE Transactions on Information Theory 22, no. 6 (November 1976): 644–54. Craig Gentry, “Fully Homomorphic Encryption Using Ideal Lattices,” in Proceedings of the 41st Annual ACM Symposium on Theory of Computing (New York: ACM, 1979), 169–78. Ronald Rivest, Adi Shamir, and Leonard Adleman, “A Method for Obtaining Digital Signatures and Public-Key Cryptosystems,” Communications of the ACM 21, no. 2 (February 1978): 120–26.

pages: 330 words: 59,335

**
The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
** by
William Thorndike

Albert Einstein, Atul Gawande, Berlin Wall, Checklist Manifesto, choice architecture, Claude Shannon: information theory, collapse of Lehman Brothers, compound rate of return, corporate governance, discounted cash flows, diversified portfolio, Donald Trump, Fall of the Berlin Wall, Gordon Gekko, intangible asset, Isaac Newton, Louis Pasteur, Mark Zuckerberg, NetJets, Norman Mailer, oil shock, pattern recognition, Ralph Waldo Emerson, Richard Feynman, shared worldview, shareholder value, six sigma, Steve Jobs, Thomas Kuhn: the structure of scientific revolutions

Teledyne’s board consisted of only six directors, including Singleton, half of them insiders. It was an exceptionally talented group, however, and each member had a significant economic interest in the company. In addition to Singleton, Roberts, and Kozmetzky (who retired from Teledyne in 1966 to run the business school at the University of Texas), board members included Claude Shannon, Singleton’s MIT classmate and the father of information theory; Arthur Rock, the legendary venture capitalist; and Fayez Sarofim, the billionaire Houston-based fund manager. This group collectively owned almost 40 percent of the company’s stock by the end of the period. . . . Even in a book filled with CEOs who were aggressive in buying back stock, Singleton is in a league of his own. Given his voracious appetite for Teledyne’s shares and the overall high levels of repurchases among the outsider CEOs, it’s worth looking a little more closely at Singleton’s approach to buybacks, which differed significantly from that of most CEOs today.

pages: 230 words: 61,702

**
The Internet of Us: Knowing More and Understanding Less in the Age of Big Data
** by
Michael P. Lynch

Affordable Care Act / Obamacare, Amazon Mechanical Turk, big data - Walmart - Pop Tarts, bitcoin, Cass Sunstein, Claude Shannon: information theory, crowdsourcing, Edward Snowden, Firefox, Google Glasses, hive mind, income inequality, Internet of things, John von Neumann, meta analysis, meta-analysis, Nate Silver, new economy, Panopticon Jeremy Bentham, patient HM, prediction markets, RFID, sharing economy, Steve Jobs, Steven Levy, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, WikiLeaks

But it is also true that in other respects we know less, that the walls of our digital life make real objective knowledge harder to come by, and that the Internet has promoted a more passive, more deferential way of knowing.13 Like our imaginary neuromedians, we are in danger of depending too much on one way of accessing the world and letting our other senses dull. Socrates on the Way to Larissa Data is not the same thing as information. As the founding father of information theory, Claude Shannon, put it back in the 1940s, data signals are noisy, and if you want to filter out what’s meaningful from those signals, you have to filter out at least some of that noise. For Shannon the noise was literal. His groundbreaking work concerned how to extract discernible information from the signals sent across telephone lines.14 But the moral is entirely general: bits of code aren’t themselves information; information is what we extract from those bits.

…

., 102 French Revolution, 58 Freud, Sigmund, 184 Fricker, Miranda, 146–48, 201 Galileo, 34, 68 Galton, Francis, 120 games, gaming, 20, 191 gatekeeping, 128, 134, 146 gender, 162 in marriage, 53–54, 72 in problem solving, 137 Georgetown University, 77–78 Gilbert, Margaret, 117–19, 200 Glass, Ira, 78 Glaucon, 54 Glauconian reasoning, 54–55, 56–58 global economy, 139, 142, 152 global warming, 56, 100, 124, 144, 185, 198 Goldberg, Sandy, 115 Goldman, Alvin, 194 Google, 5, 23, 30, 113, 128, 130, 135, 163, 174, 182, 203 business model of, 9 data collection and tracking by, 90, 155–56, 158, 161 as hypothetical “guy,” 24 monopolization by, 145–46 propaganda disseminated on, 66 in reinforcement of one’s own beliefs, 56 Google Complete, 155 Google Flu Trends, 158, 183 Google Glass, 149, 186 Google-knowing, xvi, 21–40, 25 defined, 23 limitations of, 174, 180 reliance on, 6–7, 23, 25–26, 30–31, 36, 113, 116, 153, 163, 179–80 Google Maps, 116 Google Street View, 23 Gordon, Lewis, 148 gorilla suit experiment, 30 government: autonomy limited by, 109 closed politics of, 144–45 data mining and analysis used by, 9, 90–91, 93, 104, 107 online manipulation used by, 81 purpose of, 38 transparency of, 137–38 Greece, classical philosophy of, 13, 47, 166–67, 171–72 Grimm, Stephen, 164 Guardian, 81 Gulf of Mexico, oil spill in, 118 H1N1 flu outbreak, tracking of, 158 Haidt, Jonathan, 51–54, 56, 57, 60, 196–97 Halpern, Sue, 106 Harvard Law Review, 89 Hazlett, Allan, 49 HBO GO, 145 Heidegger, Martin, 177 Hemingway, Mark, 46 Higher Order Thinking Skills (HOTS), 61 Hippocrates, 13 hive-mind, 4, 136 HM (patient), 168–69 Hobbes, Thomas, 38, 109 holiness, logical debate over, 166–67 homosexuality, changing attitudes toward, 53–54 Houla massacre, 83 Howe, Jeff, 136 Huffington Post, 43 human dignity: autonomy and, 58, 59–60 information technology as threat to, 187 interconnectedness and, 184–88 privacy and, 101–9 human rights, 54, 60 digital equality as, 142–48 protection of, 145 Hume, David, 48 hyperconnectivity, 184–88 identity: digital reshaping of, 73–74 manufactured online, 80–81 “scrubbing” of, 74 illegal searches, 93 illusion, distinguishing truth from, 67–74 incidental data collection, 95–96, 99 inclusivity, 135–37 income inequality, 142 inference, 29, 60, 172 information: accuracy and reliability of, 14, 27–30, 39–40, 44–45 collected pools of, 95–100, 107–9 distribution vs. creation of, 24 immediate, unlimited access to, 3–4, 23, 30, 42, 56, 113–16, 135–36, 141, 149, 153, 180 as interconnective, 184–88 vs. knowledge, 14 sorting and filtering of, 12, 26–29, 44–45, 127–28 information age, 111 information analysis, techniques of, 8–9 information cascades, 36, 66, 121 defined, 32 information coordination problem, 38–39, 56 information “glut,” 9–10, 44 information privacy, 94–100 and autonomy, 102–7 information sharing, coordination in, 4–5 information technology: costs of, 145 data trail in, 9 democratization through, 133–38, 148 devices and platforms of, xvii–xviii, 3, 7–8, 10, 41–43, 69, 70, 77–78, 90–91, 106–7, 144, 148–49, 156, 180, 185–87 disquieting questions about, 6 in education, 148–54 experience vs., 173–74 hypothetical loss of, 5 paradox of, 6, 12, 179 pool of data in, 95–100 surveillance and, 89–109 typified and dephysicalized objects in, 69 unequal distribution of, 144–45 see also Internet of Things information theory, 12 infosphere: defined, 10 feedback loop of social constructs in, 72–73 network of, 180 pollution of, 148 vastness of, 128 InnoCentive, 136–37, 141 institutions, cooperative, 60–61 intellectual labor, 139–40 International Telecommunications Union, 135 Internet: author’s experiment in circumventing, 21–24, 25, 35 in challenges to reasonableness, 41–63 changes wrought by, xv–xviii, 6–7, 10–11, 23, 180, 184–88 as a construction, 69 cost and profit debate over, 145 as epistemic resource, 143–45 expectations of, 80–83 as force for cohesion and democracy, 55–63 freedom both limited and enhanced by, 92–93 international rates of access to, 135, 144–45 monopolization and hegemony in, 145–46 as network, 111–13 “third wave” of, 7 see also World Wide Web; specific applications Internet of Everything, 184 Internet of Things: blurring of online and offline in, 71 defined, 7–8 integration of, 10 shared economy in, 140–41 threat from, 107, 153, 184–88 Internet of Us, digital form of life as, 10, 39, 73, 83–86, 106, 179–88 interracial marriage, 54 interrogation techniques, 105 In the Plex (Levy), 5–6 Intrade, 122–23, 136 intuition, 15, 51–53 iPhone, production of, 77–78, 80, 139, 144 IQ, 52 Iraq, 83 Iraq War, 137 ISIS, 128 isolation, polarization and, 42–43 I think, I exist, 127 James, William, 11 Jefferson, Thomas, 143 Jeppesen, Lars Bo, 137 joint commitments, defined, 117–18 journalism, truth and, 84 judgment, 51–55, 57 collective vs. individual, 117, 120–25 justice, 54 “just so” stories, 27–28 Kahneman, Daniel, 29, 51 Kant, Immanuel, 34, 58–60, 62, 85 Kitcher, Philip, 182 knowing-which, as term, 171 knowledge: in big data revolution, 87–190 changing structure of, 125–32 common, 117–19 defined and explained, xvii, 12–17 democratization of, 133–38 digital, see digital knowledge; Google-knowing distribution of, 134–35, 138, 141 diverse forms of, 130 economy of, 138–45 hyperconnectivity of, 184–88 individual vs. aggregate, 120–24 information vs., 14 Internet revolution in, xv–xviii minimal definition of, 14–15 as networked, 111–32 new aspects in old problems of, 1–86, 90 personal observation in, 33–35 political economy of, 133–54 as power, 9, 98–99, 133, 185–86 practical vs. theoretical, 169, 172 procedural, 167–74 recording and storage of, 127–28 reliability of sources of, 14, 27–31, 39–40, 44–45, 114–16 as a resource, 38–39 shared cognitive process in attainment of, 114–25 three forms of, 15–17 three simple points about, 14–17 truth and, 19, 126 understanding vs. other forms of, 6, 16–17, 90, 154, 155–73, 181 value and importance of, 12–13 knowledge-based education, 61 Kodak camera, 89 Koran, 48, 61 Kornblith, Hilary, 194 Krakauer, John, 169 Kuhn, Thomas, 159–60 Lakhani, Karim, 137 Larissa, Greece, 13, 15, 182 Leonhardt, David, 122–23 Levy, Steven, 5–6 liberals, 43 libraries, 22, 134, 153–54 of Alexandria, 8 digital form of life compared to, xvi, 17, 20, 44–45, 56, 63, 128 as epistemic resource, 145 Google treated as, 24 “Library of Babel” (Borges), 17 “Lies, Damned Lies, and ‘Fact-Checking’: The Liberal Media’s Latest Attempt to Control the Discourse” (Hemingway), 46 Lifespan of a Fact, The (D’Agata), 79 literacy, 35, 134 literal artifacts: defined, 69 social artifacts and, 71, 72 lobectomy, 168 Locke, John, 33–36, 39, 60, 67–70, 85, 127, 143 “Locke’s command,” 33–34 London Underground, mapping of, 112–13 machines, control by, 116 “mainstream” media, 32 censorship of, 66 majority rule, 120 manipulation: data mining and, 97, 104–6 of expectations, 80–82 persuasion and, 55, 57–58, 81–83, 86 manuals, 22 manufacturing, 138–39 maps, 21–22 marine chronometer, 137 marketing: bots in, 82 Glauconian, 58 targeted, 9, 90, 91, 105 marriage: changing attitudes toward, 53–54 civil vs. religious, 58–59 as social construct, 72 martial arts, 170 mass, as primary quality, 68 Massive Open Online Courses (MOOCs), 150–53 mathematics, in data analysis, 160, 161 Matrix, The, 18–19, 75 Mayer-Schönberger, Viktor, 8, 158–59 measles vaccine, 7, 124 Mechanical Turk, 136, 141 media, 134 diversity in, 42 opinion affected by, 53 sensationalist, 77 memory: accessing of, 114, 115 in educational models, 152 loss of, 168–69 superceded by information technology, xv–xvi, 3, 4, 6, 94, 149 trust in, 28, 33 Meno, 13 merchandising, online vs. brick and mortar, 70 Mercier, Hugo, 54 metrics, 112 Milner, Brenda, 168–69 mirror drawing experiment, 169 misinformation, 6–7, 31–32 in support of moral truth, 78–80, 82 mob mentality, 32–33 MOOCs (Massive Open Online Courses), 150–53 moral dumbfounding, 52 morality, moral values, xvii, 6, 44, 53–54, 195 “Moses Illusion,” 29–30 motor acuity, mastery of, 170–71, 173 motor skills, 167–74 Murray, Charles J., 147 music, as dephysicalized object, 69–70 Nagel, Thomas, 84 naming, identification by, 94 narrative license, truth and falsehood in, 78–79 National Endowment for the Humanities, 61 National Science Foundation, 61 Nature, 158, 161 Netflix, 69, 145 Net neutrality, defined, 145 netography, 112–13 of knowledge, 125–32 networked age, 111 networks, 111–32 collective knowledge of, 116–25, 180 knowledge reshaped and altered by, 125–32, 133, 140 in problem solving, 136 use of term, 111–12 neural system, 26 neural transplants, 3, 5 Neurath, Otto, 128–29 neuromedia, 3–5, 12, 17–19, 113–14, 132, 149, 168, 180–82, 184 limitations of, 174 as threat to education, 153–54 Newton, Isaac, 175 New Yorker, 25, 26 New York Times, 122, 174 Nietzsche, Friedrich, 111 Nobel laureates, 149 noble lie, 83, 86 nonfiction, 79–80 NPR, 78, 80 NSA: alleged privacy abuses by, 98–100, 138 data mining by, 9, 91, 95–96, 108, 167 proposed limitations on, 109 Ntrepid, 81 nuclear weapons technology, xvii nullius in verba (take nobody’s word for it), 34 Obama, Barack, 7, 100 administration, 109 objectivity, objective truth, 45, 74 as anchor for belief, 131 in constructed world, 83–86 as foundation for knowledge, 127 observation, 49, 60 affected by expectations, 159–60 behavior affected by, 91, 97 “oceanic feeling,” 184 “offlife,” 70 OkCupid, 157 “onlife,” 70 online identity creation, 73–74 online ranking, 119–21, 136 open access research sharing sites, 135–36 open society: closed politics vs., 144–45 values of, 41–43, 62 open source software, 135 Operation Earnest Voice, 81 Operation Ivy, ix opinion: knowledge vs., 13, 14, 126 in online ranking, 119–20 persuasion and, 50–51 truth as constructed by, 85–86 optical illusions, 67 Oracle of Delphi, 16–17, 171 Outcome-Based Education (OBE), 61–62 ownership, changing concept of, 73 ox, experiment on weight of, 120 Oxford, 168 Page, Larry, 5–6 Panopticon, 91, 92, 97 perception: acuity of, 173 distinguishing truth in, 67–74 expectations and, 159–60 misleading, 29–30, 67 as relative, 67–68 perceptual incongruity, 159–60 personal freedom, 101 persuasion, 50–51, 54–55, 56–58 by bots, 82 phone books, 22 phone data collection, 95, 108 photography: privacy and, 89, 93 sexually-explicit, 99 photo-sharing, manipulation in, 82–83 Plato, 13–14, 16–17, 54, 59, 83, 126, 165–67 polarization, 7 herd mentality in, 66 isolated tribes in, 43–46 politics, 162, 196 accessibility in, 23 activism in, 66, 67 bias in, 43–46 closed, 144–45 elections in, 120–23 of knowledge, 133–54 opposition to critical thinking in, 61–62 persuasion in, 57–58, 82–83 power in, 86, 133 prediction market in, 122–23 Politifact, 46 Popper, Karl, 41–43 Postman, L.

pages: 218 words: 63,471

**
How We Got Here: A Slightly Irreverent History of Technology and Markets
** by
Andy Kessler

Albert Einstein, Andy Kessler, animal electricity, automated trading system, bank run, Big bang: deregulation of the City of London, Bob Noyce, Bretton Woods, British Empire, buttonwood tree, Claude Shannon: information theory, Corn Laws, Douglas Engelbart, Edward Lloyd's coffeehouse, fiat currency, fixed income, floating exchange rates, Fractional reserve banking, full employment, Grace Hopper, invention of the steam engine, invention of the telephone, invisible hand, Isaac Newton, Jacquard loom, James Hargreaves, James Watt: steam engine, John von Neumann, joint-stock company, joint-stock limited liability company, Joseph-Marie Jacquard, Kickstarter, Leonard Kleinrock, Marc Andreessen, Maui Hawaii, Menlo Park, Metcalfe's law, Metcalfe’s law, Mitch Kapor, packet switching, price mechanism, probability theory / Blaise Pascal / Pierre de Fermat, profit motive, railway mania, RAND corporation, Robert Metcalfe, Silicon Valley, Small Order Execution System, South Sea Bubble, spice trade, spinning jenny, Steve Jobs, supply-chain management, supply-chain management software, trade route, transatlantic slave trade, tulip mania, Turing machine, Turing test, undersea cable, William Shockley: the traitorous eight

In 1941, a University of Michigan undergrad and MIT grad, Claude Shannon, joined Bell Labs. As per custom, no one told him what to do. So he started trying to apply mathematics to communications. He wasn’t interested so much in the signals, but in the probability that what one shoved into one end of a channel would come out the other end intact, through all the noise that impairs the signal. And what if you shoved an encoder and decoder on either end. How much information could you transmit? Or how clear could the voice signal be? Through a series of papers starting in 1948 came Shannon’s Law, which calculated the maximum throughput of error-free information through a channel with a certain amount of noise in it. Put another way, Shannon laid the foundation of modern information theory, turned encryption into a science (the fallibility of Enigma-like machines is behind us) and set limits on what wireless networks could be used for.

pages: 254 words: 76,064

**
Whiplash: How to Survive Our Faster Future
** by
Joi Ito,
Jeff Howe

3D printing, Albert Michelson, Amazon Web Services, artificial general intelligence, basic income, Bernie Sanders, bitcoin, Black Swan, blockchain, Burning Man, buy low sell high, Claude Shannon: information theory, cloud computing, Computer Numeric Control, conceptual framework, crowdsourcing, cryptocurrency, data acquisition, disruptive innovation, Donald Trump, double helix, Edward Snowden, Elon Musk, Ferguson, Missouri, fiat currency, financial innovation, Flash crash, frictionless, game design, Gerolamo Cardano, informal economy, interchangeable parts, Internet Archive, Internet of things, Isaac Newton, Jeff Bezos, John Harrison: Longitude, Joi Ito, Khan Academy, Kickstarter, Mark Zuckerberg, microbiome, Nate Silver, Network effects, neurotypical, Oculus Rift, pattern recognition, peer-to-peer, pirate software, pre–internet, prisoner's dilemma, Productivity paradox, race to the bottom, RAND corporation, random walk, Ray Kurzweil, Ronald Coase, Ross Ulbricht, Satoshi Nakamoto, self-driving car, SETI@home, side project, Silicon Valley, Silicon Valley startup, Simon Singh, Singularitarianism, Skype, slashdot, smart contracts, Steve Ballmer, Steve Jobs, Steven Levy, Stewart Brand, Stuxnet, supply-chain management, technological singularity, technoutopianism, The Nature of the Firm, the scientific method, The Signal and the Noise by Nate Silver, There's no reason for any individual to have a computer in his home - Ken Olsen, Thomas Kuhn: the structure of scientific revolutions, universal basic income, unpaid internship, uranium enrichment, urban planning, WikiLeaks

Called the Bombe, the device could eliminate thousands of possible combinations, leaving a much smaller number of potential ciphers for the human cryptographers at Bletchley to try.30 When the Nazis replaced Enigma with Lorenz—a secure means of encoding teleprinter messages for radio transmission, which the British knew as “Tunny”—Tommy Flowers, a British engineer, countered with Colossus, the first programmable electronic digital computer. Although the project remained secret until the 1970s, and all of the records associated with it were destroyed, several of the people who had worked on the project went on to build the next generation of digital computers.31 Much of their work was informed by two papers published by Claude Shannon in the late 1940s, “A Mathematical Theory of Communication”32 and “Communication Theory of Secrecy Systems,” 33 which established the field of information theory and proved that any theoretically unbreakable cipher must share the characteristics of the one-time pad. Originally developed in the late nineteenth century, and rediscovered near the end of the First World War, the one-time pad requires that both the sender and the receiver have a key made up of a string of random digits at least the length of the message.

…

Again, no single mind—except possibly William Shakespeare’s—could create the constant stream of linguistic innovations that cohere into the myriad forms of any single language. The most obvious example of an emergent system created by humans is the economy, which clearly exhibits attributes that no individual could control. We tend to think of markets as little more than the site at which buyers meet sellers to conduct their business. But as Austrian economist Friedrich Hayek observed in a 1945 paper regarded as one of the foundational texts of information theory, markets do something far more valuable: They gather and utilize knowledge which is “widely dispersed among individuals,” Hayek writes. “Each member of society can have only a small fraction of the knowledge possessed by all, and… each is therefore ignorant of most of the facts on which the working of society rests.” The market, in Hayek’s view, is the accidental aggregation machine that humans created in order to “conquer intelligence.”3 By Hayek’s reckoning, the price of a stock is the encapsulation of all the information known about that company at any time, compounded by what is understood about the relative stability of the world itself.

…

The irony is that, as with the astrological explanation of the black plague, Sokal’s paper isn’t exactly wrong; it’s just right within a coherent and uselessly recondite system of understanding, like a winning argument in a language spoken only on some remote island. None of this is to dispute the central role theory has played in the effusion of knowledge that occurred over the last century and a half. But theory on its own can be as seductive as it is dangerous. Practice must inform theory just as theory must inform practice; in a world of rapid change, this is more important than ever. In the coming years some scientific discoveries are sure to test some of our most cherished beliefs. We need to make sure we don’t assume the role of the Vatican when confronted by evidence that we’re just another planet revolving around a star. —Jeff Howe 7 Diversity over Ability In the fall of 2011 the journal Nature Structural and Molecular Biology published a paper revealing that after more than a decade of effort, researchers had succeeded in mapping the structure of an enzyme used by retroviruses similar to HIV.1 The achievement was widely viewed as a breakthrough, but there was something else astonishing about the article.

pages: 791 words: 85,159

**
Social Life of Information
** by
John Seely Brown,
Paul Duguid

business process, Claude Shannon: information theory, computer age, cross-subsidies, disintermediation, double entry bookkeeping, Frank Gehry, frictionless, frictionless market, future of work, George Gilder, George Santayana, global village, Howard Rheingold, informal economy, information retrieval, invisible hand, Isaac Newton, John Markoff, Just-in-time delivery, Kenneth Arrow, Kevin Kelly, knowledge economy, knowledge worker, lateral thinking, loose coupling, Marshall McLuhan, medical malpractice, moral hazard, Network effects, new economy, Productivity paradox, Robert Metcalfe, rolodex, Ronald Coase, shareholder value, Shoshana Zuboff, Silicon Valley, Steve Jobs, Superbowl ad, Ted Nelson, telepresence, the medium is the message, The Nature of the Firm, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, Turing test, Vannevar Bush, Y2K

Sometime around 2012, it has been predicted, Moore's Law will come up against the physical limitations of current microchip components, though by then solid-state components may well have been replaced. 6. Kelly, 1997. 7. Negroponte, 995. John Tukey coined the term bit. It stands for "binary digit." 8. It's worth remembering that formal information theory, while it holds the bit as a central concern, is indifferent to meaning. Claude Shannon, who with Warren Weaver laid the foundations of modern information theory, is quite clear about this: "the semantic aspects of communication are irrelevant to the engineering aspects" (Shannon and Weaver, 1964, p. 8). 9. The pervasive image of the new open frontier only works if we forget the presence on the old frontier of the U.S. Army, the Church of Latter-Day Saints, and myriad other organizations and institutions large and small (let alone its native inhabitants) that shaped the frontier. 10.

…

Thus while one person often has conflicting information, he or she will not usually have conflicting knowledge. And while it seems quite reasonable to say, "I've got the information, but I don't understand it," it seems less reasonable to say, "I know, but I don't understand," or "I have the knowledge, but I can't see what it means.'' (Indeed, while conventional uses of information don't necessarily coincide with the specialist uses, as we noted earlier, "information theory" holds information to be independent of meaning.)5 Where Is the Knower Lost in the Information? Knowledge's personal attributes suggest that the shift toward knowledge may (or should) represent a shift toward people. Focusing on process, as we argued, draws attention away from people, Page 121 concentrating instead on disembodied processes and the information that drives them.

…

In turn, the identity under development shapes what that person comes to know, how he or she assimilates knowledge and information. So, even when people are learning about, in Bruner's terms, the identity they are developing determines what they pay attention to and what they learn. What people learn about, then, is always refracted through who they are and what they are learning to be. 27 So information, while a critical part of learning, is only one among many forces at work. Information theory portrays information as a change registered in an otherwise steady state. It's a light flashing out on a dark hillside (to borrow an example from the philosopher Fred Dretske28) or the splash of a pebble breaking the calm of a still lake. In either case, the result, as the anthropologist Gregory Bateson puts it neatly, is "a difference that makes a difference."29 The importance of disturbance or change makes it almost inevitable that we focus on these.

pages: 285 words: 86,853

**
What Algorithms Want: Imagination in the Age of Computing
** by
Ed Finn

Airbnb, Albert Einstein, algorithmic trading, Amazon Mechanical Turk, Amazon Web Services, bitcoin, blockchain, Chuck Templeton: OpenTable:, Claude Shannon: information theory, commoditize, Credit Default Swap, crowdsourcing, cryptocurrency, disruptive innovation, Donald Knuth, Douglas Engelbart, Douglas Engelbart, Elon Musk, factory automation, fiat currency, Filter Bubble, Flash crash, game design, Google Glasses, Google X / Alphabet X, High speed trading, hiring and firing, invisible hand, Isaac Newton, iterative process, Jaron Lanier, Jeff Bezos, job automation, John Conway, John Markoff, Just-in-time delivery, Kickstarter, late fees, lifelogging, Loebner Prize, Lyft, Mother of all demos, Nate Silver, natural language processing, Netflix Prize, new economy, Nicholas Carr, Norbert Wiener, PageRank, peer-to-peer, Peter Thiel, Ray Kurzweil, recommendation engine, Republic of Letters, ride hailing / ride sharing, Satoshi Nakamoto, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, social graph, software studies, speech recognition, statistical model, Steve Jobs, Steven Levy, Stewart Brand, supply-chain management, TaskRabbit, technological singularity, technoutopianism, The Coming Technological Singularity, the scientific method, The Signal and the Noise by Nate Silver, The Structural Transformation of the Public Sphere, The Wealth of Nations by Adam Smith, transaction costs, traveling salesman, Turing machine, Turing test, Uber and Lyft, Uber for X, uber lyft, urban planning, Vannevar Bush, Vernor Vinge, wage slave

It is unsettling to abandon the comfortable solidity of a table, that ancient prop for philosophers of materialism, and replace it with a probabilistic cloud of atoms. And yet only with probability—more important, a language of probability—can we begin to describe our relativistic universe. But far more unsettling, and the central thesis of the closely allied field of information theory, is the notion that probability applies to information as much as to material reality. By framing information as uncertainty, as surprise, as unpredicted new data, mathematician Claude Shannon created a quantifiable measurement of communication.30 Shannon’s framework has informed decades of work in signal processing, cryptography, and several other fields, but its starkly limited view of what counts has become a major influence in contemporary understandings of computational knowledge.

…

Wiener names Leibniz the patron saint of cybernetics: “The philosophy of Leibniz centers about two closely related concepts—that of a universal symbolism and that of a calculus of reasoning.”27 As the book’s title suggests, the aim of cybernetics in the 1940s and 1950s was to define and implement those two ideas: an intellectual system that could encompass all scientific fields, and a means of quantifying change within that system. Using them, the early cyberneticians sought to forge a synthesis between the nascent fields of computer science, information theory, physics, and many others (indeed, Wiener nominated his patron saint in part as the last man to have “full command of all the intellectual activity of his day”).28 The vehicle for this synthesis was, intellectually, the field of information theory and the ordering features of communication between different individual and collective entities, and pragmatically, the growing power of mechanical and computational systems to measure, modulate, and direct such communications. On a philosophical level, Wiener’s vision of cybernetics depended on the transition from certainty to probability in the twentieth century.29 The advances of Einsteinian relativity and quantum mechanics suggested that uncertainty, or indeterminacy, was fundamental to the cosmos and that observation always affected the system being observed.

…

Program of the Book We begin with a sketch of the algorithm from its intellectual taproots to its contemporary presence in culture. Chapter 1 lays out a full reading of the algorithm as a critical concept across four intellectual strands, beginning with its foundations in computer science and the notion of “effective computability.” The second strand considers cybernetics and ongoing debates about embodiment, abstraction, and information theory. Third, I return to magic and its overlap with symbolism, engaging with notions of software, “sourcery,” and the power of metaphors to represent reality. Fourth, I draw in the long history of technicity and humanity’s coevolution with our cultural tools. Synthesizing these threads, I offer a definition of the algorithm as culture machine in the context of process and implementation. The chapter closes with a summary of the essential facets of algorithmic reading and a brief glimpse of algorithmic imagination.

pages: 374 words: 94,508

**
Infonomics: How to Monetize, Manage, and Measure Information as an Asset for Competitive Advantage
** by
Douglas B. Laney

3D printing, Affordable Care Act / Obamacare, banking crisis, blockchain, business climate, business intelligence, business process, call centre, chief data officer, Claude Shannon: information theory, commoditize, conceptual framework, crowdsourcing, dark matter, data acquisition, digital twin, discounted cash flows, disintermediation, diversification, en.wikipedia.org, endowment effect, Erik Brynjolfsson, full employment, informal economy, intangible asset, Internet of things, linked data, Lyft, Nash equilibrium, Network effects, new economy, obamacare, performance metric, profit motive, recommendation engine, RFID, semantic web, smart meter, Snapchat, software as a service, source of truth, supply-chain management, text mining, uber lyft, Y2K, yield curve

Others worthy of consideration as well include: Douglas Hubbard’s “applied information economics” methodology strictly for measuring the decision value of information.15 Bill Schmarzo’s “data economic valuation” approach also strictly for measuring information’s contribution to decision making.16 Paul Strassman’s macroeconomic method of comparing the competitive gains of organizations with similar tangible assets, after accounting for all other valuation premium factors.17 Dilip Krishna’s methods for attributing business outcomes to specific information initiatives (Business Impact Model); an adapted discount cash flow model (a Monte Carlo simulation method); and a comparative analysis approach similar to Strassman’s but using a pure-play information company for comparison.18 Tonie Leatherberry’s and Rena Mears’s “net business value” method that considers information’s present and discounted future value to each department, various risks, and total cost of ownership.19 Robert Schmidt’s and Jennifer Fisher’s promising but loosely defined and abandoned patent application for an amalgam of information cost, accuracy, and other quality factors, along with information usage/access.20 Mark Albala’s conceptual valuation model, similar to that of Schmidt and Fischer, in which information value is based on information requests, usage (royalties), and outcomes.21 Dave McCrory’s concept and formula for what he calls “data gravity” that defines the proximal relationship among data sources and applications.22 As well, software and services companies such as Schedule1, Pimsoft, Everedge, ThreatModeler, Alex Solutions, Datum, Alation, and Real Social Dynamics (RSD) [in collaboration with the Geneva School of Business Administration] have developed exclusive approaches for measuring information value and/or risk in economic terms specific to their core offerings. Of course, countless papers and books have been written on the value of information from an engineering, communications, and theoretical standpoint, dating back to Claude Shannon’s seminal work on information theory. Even the term “business intelligence” predates any Gartner or IBM paper, having been first used in the 1865 book, “Cyclopaedia of Commercial and Business Anecdotes” in describing the value of information on military battles.23 Understanding and Closing Information Value Gaps Enterprises repeatedly fall into the trap of getting diminishing returns from buying and applying more complex and leading-edge IT to the same narrow sets of data, rather than doing simpler things with the data that has the highest value gap.

…

This book is a set of new ideas, frameworks, evidence, and even approaches adapted from other disciplines to help them transform their organizations. Infonomics is a broad concept I conceived and first mentioned around the turn of the millennium to express information’s increasing behavior and importance as an economic asset. Over the years I have continued to research and develop the concept—exploring, relating, and integrating the disciplines of information theory, accounting, asset management, property ownership and rights, measurement, innovation, and economics. This has taken me from working with and interviewing clients, colleagues, information consultants, valuation experts, accountants, economists, and academics on these topics—to the depths of reading hundreds of pages of accounting standards body discussion papers on the recognition, and valuation and reporting of intangibles.

…

We have only been managing our biological ecosystems for several millennia. What could those of us in the decades-old information world possibly learn from them? A lot. One last note on ecosystems: if you think the whole concept of drawing parallels between biological and information ecosystems is a bit whacked, consider that the leading theoretical ecologist, Robert Ulanowicz, has employed modern information theory concepts to describe the complex structure of biological ecosystems themselves.11 Lessons from Sustainability When an ecosystem is healthy, scientists say it is in balance or sustainable. Since we want our information ecosystems to be sustainable and thrive, let’s take a look at how we might incorporate the principles of sustainability or conservation. What was originally known as the “three Rs” of Reduce, Reuse, and Recycle recently have been expanded into “five Rs” which also include Refuse and Repurpose.

pages: 297 words: 89,820

**
The Perfect Thing: How the iPod Shuffles Commerce, Culture, and Coolness
** by
Steven Levy

Apple II, British Empire, Claude Shannon: information theory, en.wikipedia.org, indoor plumbing, Internet Archive, Jeff Bezos, John Markoff, Joi Ito, Jony Ive, Kevin Kelly, Sand Hill Road, Saturday Night Live, Silicon Valley, social web, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, technology bubble, Thomas L Friedman

Robbin is talking randomness in terms that software can reasonably produce, which is not perfect randomness. True randomness, it turns out, is very difficult to produce. This is well known to cryptographers. A well-funded, sophisticated cryptanalyst will Shuffle seize on any variation from a random distribution as a means of attacking a code. This subject was most famously examined by Claude Shannon, arguably the Father of Randomness. Shannon himself expressed some random behavior: the MIT math professor was known for his eccentric habits, which included riding a unicy-cle. But his papers on information theory are rock solid. Basically, he defined randomness as a question of unpredictability. If a series of numbers is truly random, you have no possible way of guessing what comes next. If something isn't random (as in the case of what letter might follow another in a message written in English), you have a better chance of figuring out what comes next.

pages: 571 words: 105,054

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Advances in Financial Machine Learning
** by
Marcos Lopez de Prado

algorithmic trading, Amazon Web Services, asset allocation, backtesting, bioinformatics, Brownian motion, business process, Claude Shannon: information theory, cloud computing, complexity theory, correlation coefficient, correlation does not imply causation, diversification, diversified portfolio, en.wikipedia.org, fixed income, Flash crash, G4S, implied volatility, information asymmetry, latency arbitrage, margin call, market fragmentation, market microstructure, martingale, NP-complete, P = NP, p-value, paper trading, pattern recognition, performance metric, profit maximization, quantitative trading / quantitative ﬁnance, RAND corporation, random walk, risk-adjusted returns, risk/return, selection bias, Sharpe ratio, short selling, Silicon Valley, smart cities, smart meter, statistical arbitrage, statistical model, stochastic process, survivorship bias, transaction costs, traveling salesman

For example, the ML algorithm may find that momentum bets are more profitable when prices carry little information, and that mean-reversion bets are more profitable when prices carry a lot of information. In this chapter, we will explore ways to determine the amount of information contained in a price series. 18.2 Shannon's Entropy In this section we will review a few concepts from information theory that will be useful in the remainder of the chapter. The reader can find a complete exposition in MacKay [2003]. The father of information theory, Claude Shannon, defined entropy as the average amount of information (over long messages) produced by a stationary source of data. It is the smallest number of bits per character required to describe the message in a uniquely decodable way. Mathematically, Shannon [1948] defined the entropy of a discrete random variable X with possible values x ∈ A as with 0 ≤ H[X] ≤ log2[||A||] where: p[x] is the probability of x; H[X] = 0⇔∃x|p[x] = 1; for all x; and ||A|| is the size of the set A.

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Kontoyiannis (1998): “Asymptotically optimal lossy Lempel-Ziv coding,” ISIT, Cambridge, MA, August 16–August 21. MacKay, D. (2003): Information Theory, Inference, and Learning Algorithms, 1st ed. Cambridge University Press. Meucci, A. (2009): “Managing diversification.” Risk Magazine, Vol. 22, pp. 74–79. Norwich, K. (2003): Information, Sensation and Perception, 1st ed. Academic Press. Ornstein, D.S. and B. Weiss (1993): “Entropy and data compression schemes.” IEEE Transactions on Information Theory, Vol. 39, pp. 78–83. Shannon, C. (1948): “A mathematical theory of communication.” Bell System Technical Journal, Vol. 27, No. 3, pp. 379–423. Ziv, J. and A. Lempel (1978): “Compression of individual sequences via variable-rate coding.” IEEE Transactions on Information Theory, Vol. 24, No. 5, pp. 530–536. Bibliography Easley, D., R. Engle, M.

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In other words, market makers are not adversely selected when their prediction of order flow imbalance is accurate, even if |OIτ| ≫ 0. In order to determine the probability of adverse selection, we must determine how unpredictable the order flow imbalance is. We can determine this by applying information theory. Consider a long sequence of symbols. When that sequence contains few redundant patterns, it encompasses a level of complexity that makes it hard to describe and predict. Kolmogorov [1965] formulated this connection between redundancy and complexity. In information theory, lossless compression is the task of perfectly describing a sequence with as few bits as possible. The more redundancies a sequence contains, the greater compression rates can be achieved. Entropy characterizes the redundancy of a source, hence its Kolmogorov complexity and its predictability.

pages: 385 words: 98,015

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Einstein's Unfinished Revolution: The Search for What Lies Beyond the Quantum
** by
Lee Smolin

Albert Einstein, Brownian motion, Claude Shannon: information theory, cosmic microwave background, cosmological constant, Ernest Rutherford, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Murray Gell-Mann, mutually assured destruction, Richard Feynman, Richard Florida, Schrödinger's Cat, Stephen Hawking, the scientific method, Turing machine

Nonetheless, this quantum information approach to quantum foundations has had a good influence on diverse fields of physics, from hard-core solid-state physics to speculations on string theory and quantum black holes. However, we should be careful to distinguish several different ideas about the relationship between physics and information, some of which are useful but also trivially true; others of which are radical and would need, in my view, more justification than they’ve been given. Let’s start by defining information. One useful definition was given by Claude Shannon, who may be considered the founder of information theory. His definition was set in the framework of communication, and contemplates a channel which carries a message from a sender to a receiver. These, it is assumed, share a language, by means of which they give meaning to a sequence of symbols. The amount of information in the message is defined to be the number of answers to a set of yes/no questions that the receiver learns from the sender by understanding what the message says.

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Research groups began to spring up around the world, and they quickly filled with brilliant young researchers, many of whom had a dual research strategy in which they would attack the problems in quantum foundations while contributing to the development of quantum computing. As a result, a new language for quantum physics was invented that was based on information theory, which is a basic tool of computer science. This new language, called quantum information theory, is a hybrid of computer science and quantum physics and is well adapted to the challenges of building quantum computers. This has led to a powerful set of tools and concepts that have proved invaluable at sharpening our understanding of quantum physics. Nonetheless, quantum information theory is a purely operational approach that is most comfortable describing nature in the context of experiments, in which systems are prepared and then measured. Nature outside the laboratory hardly makes an appearance, and when it does, it is often, not surprisingly, analogized to a quantum computer.

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This is a long story, with some fascinating ins and outs, but the conclusion is simple: the wave function appears to capture an essential aspect of reality.13 The closest to success I know of is an approach by the mathematician Edward Nelson called stochastic quantum mechanics. For many years I thought this was the right way, but then I understood it requires a large amount of fine-tuning to avoid instabilities. This conclusion is upheld by a recent analysis by three specialists in quantum information theory, Matthew Pusey, Jonathan Barrett, and Terry Rudolph, who gave a new argument to the effect that the quantum state cannot be merely a representation of information an observer has about a system. It must be physically real, or represent something real.14 So we seem to have only two choices: keep the wave function itself as a beable, as it is in pilot wave theory and collapse models, or find another beable that captures, in some different form, the physical reality which the wave function represents.

**
Data and the City
** by
Rob Kitchin,Tracey P. Lauriault,Gavin McArdle

A Declaration of the Independence of Cyberspace, bike sharing scheme, bitcoin, blockchain, Bretton Woods, Chelsea Manning, citizen journalism, Claude Shannon: information theory, clean water, cloud computing, complexity theory, conceptual framework, corporate governance, correlation does not imply causation, create, read, update, delete, crowdsourcing, cryptocurrency, dematerialisation, digital map, distributed ledger, fault tolerance, fiat currency, Filter Bubble, floating exchange rates, global value chain, Google Earth, hive mind, Internet of things, Kickstarter, knowledge economy, lifelogging, linked data, loose coupling, new economy, New Urbanism, Nicholas Carr, open economy, openstreetmap, packet switching, pattern recognition, performance metric, place-making, RAND corporation, RFID, Richard Florida, ride hailing / ride sharing, semantic web, sentiment analysis, sharing economy, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart contracts, smart grid, smart meter, social graph, software studies, statistical model, TaskRabbit, text mining, The Chicago School, The Death and Life of Great American Cities, the market place, the medium is the message, the scientific method, Toyota Production System, urban planning, urban sprawl, web application

The perceiving and conceiving human is held apart. 92 J. Merricks White Before positioning data threads within these debates, it is worth contextualizing the assertion that data are material. For what else could they be? Important here is genealogical work on the development of cybernetics and information theory. Through a close reading of post-war cyberneticians such as Norbert Weiner and Claude Shannon, Hayles (1999) shows how information came to be understood as a pattern separate from a material form. This strategy of disembodiment was important in allowing information theory to migrate between academic disciplines such that it could equally be applied to biology or cognitive psychology as to communications engineering. Implicit in this separation between matter and meaning, however, is a latent mind/body dualism. Cybernetics, at least in its early years, had an uneasy relationship with the tenants of liberal humanism.

pages: 313 words: 101,403

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My Life as a Quant: Reflections on Physics and Finance
** by
Emanuel Derman

Berlin Wall, bioinformatics, Black-Scholes formula, Brownian motion, buy and hold, capital asset pricing model, Claude Shannon: information theory, Donald Knuth, Emanuel Derman, fixed income, Gödel, Escher, Bach, haute couture, hiring and firing, implied volatility, interest rate derivative, Jeff Bezos, John Meriwether, John von Neumann, law of one price, linked data, Long Term Capital Management, moral hazard, Murray Gell-Mann, Myron Scholes, Paul Samuelson, pre–internet, publish or perish, quantitative trading / quantitative ﬁnance, Sharpe ratio, statistical arbitrage, statistical model, Stephen Hawking, Steve Jobs, stochastic volatility, technology bubble, the new new thing, transaction costs, volatility smile, Y2K, yield curve, zero-coupon bond, zero-sum game

Area 10 had played a large role in evangelizing the dual view of programs as both tools and text, written not only to control electronic machines but also to to be understood and manipulated by people. At the labs people were proud of programming and viewed it as an art. In physics and engineering the Labs was an experimental and theoretical powerhouse, producing research in electronics and information theory that made possible many of the subsequent advances in communications. Bardeen, Brattain, and Shockley had invented the transistor there in 1947, and Claude Shannon published his landmark paper "A Mathematical Theory of Communication" in the Bell System Technical Journal in 1948. There were fundamental discoveries made, too-Penzias and Wilson won the Nobel Prize for discovering the cosmic radiation left behind by the Big Bang, as predicted by Robert Herman. Even during the period I worked there, Horst Stormer, now at Columbia University, did the research on the quantum Hall effect that recently won him a share of the Nobel Prize.

pages: 372 words: 101,174

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How to Create a Mind: The Secret of Human Thought Revealed
** by
Ray Kurzweil

Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, Albert Michelson, anesthesia awareness, anthropic principle, brain emulation, cellular automata, Claude Shannon: information theory, cloud computing, computer age, Dean Kamen, discovery of DNA, double helix, en.wikipedia.org, epigenetics, George Gilder, Google Earth, Isaac Newton, iterative process, Jacquard loom, John von Neumann, Law of Accelerating Returns, linear programming, Loebner Prize, mandelbrot fractal, Norbert Wiener, optical character recognition, pattern recognition, Peter Thiel, Ralph Waldo Emerson, random walk, Ray Kurzweil, reversible computing, selective serotonin reuptake inhibitor (SSRI), self-driving car, speech recognition, Steven Pinker, strong AI, the scientific method, theory of mind, Turing complete, Turing machine, Turing test, Wall-E, Watson beat the top human players on Jeopardy!, X Prize

Even within the arithmetic unit, there is communication from one bit register to another. Communication is pervasive at every level. If we consider that error rates escalate rapidly with increased communication and that a single-bit error can destroy the integrity of a process, digital computation was doomed—or so it seemed at the time. Remarkably, that was the common view until American mathematician Claude Shannon (1916–2001) came along and demonstrated how we can create arbitrarily accurate communication using even the most unreliable communication channels. What Shannon stated in his landmark paper “A Mathematical Theory of Communication,” published in the Bell System Technical Journal in July and October 1948, and in particular in his noisy channel-coding theorem, was that if you have available a channel with any error rate (except for exactly 50 percent per bit, which would mean that the channel was just transmitting pure noise), you are able to transmit a message in which the error rate is as accurate as you desire.

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As a simple example, if I transmit each bit three times and take the majority vote, I will have substantially increased the reliability of the result. If that is not good enough, simply increase the redundancy until you get the reliability you need. Simply repeating information is the easiest way to achieve arbitrarily high accuracy rates from low-accuracy channels, but it is not the most efficient approach. Shannon’s paper, which established the field of information theory, presented optimal methods of error detection and correction codes that can achieve any target accuracy through any nonrandom channel. Older readers will recall telephone modems, which transmitted information through noisy analog phone lines. These lines featured audibly obvious hisses and pops and many other forms of distortion, but nonetheless were able to transmit digital data with very high accuracy rates, thanks to Shannon’s noisy channel theorem.

pages: 338 words: 106,936

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The Physics of Wall Street: A Brief History of Predicting the Unpredictable
** by
James Owen Weatherall

Albert Einstein, algorithmic trading, Antoine Gombaud: Chevalier de Méré, Asian financial crisis, bank run, beat the dealer, Benoit Mandelbrot, Black Swan, Black-Scholes formula, Bonfire of the Vanities, Bretton Woods, Brownian motion, business cycle, butterfly effect, buy and hold, capital asset pricing model, Carmen Reinhart, Claude Shannon: information theory, collateralized debt obligation, collective bargaining, dark matter, Edward Lorenz: Chaos theory, Edward Thorp, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial innovation, fixed income, George Akerlof, Gerolamo Cardano, Henri Poincaré, invisible hand, Isaac Newton, iterative process, John Nash: game theory, Kenneth Rogoff, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, martingale, Myron Scholes, new economy, Paul Lévy, Paul Samuelson, prediction markets, probability theory / Blaise Pascal / Pierre de Fermat, quantitative trading / quantitative ﬁnance, random walk, Renaissance Technologies, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Sharpe ratio, short selling, Silicon Valley, South Sea Bubble, statistical arbitrage, statistical model, stochastic process, The Chicago School, The Myth of the Rational Market, tulip mania, Vilfredo Pareto, volatility smile

Moore instructorship in mathematics at MIT — a position held a decade earlier by John Nash, the pioneering mathematician profiled by Sylvia Nasar in her book A Beautiful Mind. Thorp and his wife, Vivian, left Southern California and moved to Cambridge, Massachusetts. They spent only two years on the East Coast before moving back west, to New Mexico. But it was enough to set their lives on a different track: it was at MIT that Thorp met Claude Shannon. Shannon may be the only person in the twentieth century who can claim to have founded an entirely new science. The field he invented, information theory, is essentially the mathematics behind the digital revolution. It undergirds computer science, modern telecommunications, cryptography, and code-breaking. The basic object of study is data: bits (a term Shannon coined) of information. The study of things such as how light waves move through air or how human languages work is very old; Shannon’s groundbreaking idea was that you could study the information itself — the stuff that’s carried by the light waves from objects in the world to your retinas, or the stuff that passes from one person to another when they speak — independently of the waves and the words.

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Ed Thorp is a prime example. He accomplished what Bachelier and Osborne never could: he showed that physics and mathematics could be used to profit from financial markets. Building on the work of Bachelier and Osborne, and on his own experience with gambling systems, Thorp invented the modern hedge fund — by applying ideas from a new field that combined mathematical physics and electrical engineering. Information theory, as it’s known, was as much a part of the 1960s as the Vegas Strip. And in Thorp’s hands, it proved to be the missing link between the statistics of market prices and a winning strategy on Wall Street. Thorp was born at the peak of the Depression, on August 14, 1932. His father was a retired army officer, a veteran of the First World War. When Thorp was born, his father was fortunate enough to have found work as a bank guard, but money was still tight and the young Thorp developed an early instinct for thrift and financial savvy.

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The study of things such as how light waves move through air or how human languages work is very old; Shannon’s groundbreaking idea was that you could study the information itself — the stuff that’s carried by the light waves from objects in the world to your retinas, or the stuff that passes from one person to another when they speak — independently of the waves and the words. It is hard to overstate how important this idea would become. Information theory grew out of a project Shannon worked on during World War II, as a staff scientist at Bell Labs, AT&T’s research division in Murray Hill, New Jersey. The goal of the project was to build an encrypted telephone system so that generals at the front could safely communicate with central command. Unfortunately, this was hard to do. There is only one code system that can be mathematically proven to be unbreakable.

pages: 370 words: 107,983

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Rage Inside the Machine: The Prejudice of Algorithms, and How to Stop the Internet Making Bigots of Us All
** by
Robert Elliott Smith

Ada Lovelace, affirmative action, AI winter, Alfred Russel Wallace, Amazon Mechanical Turk, animal electricity, autonomous vehicles, Black Swan, British Empire, cellular automata, citizen journalism, Claude Shannon: information theory, combinatorial explosion, corporate personhood, correlation coefficient, crowdsourcing, Daniel Kahneman / Amos Tversky, desegregation, discovery of DNA, Douglas Hofstadter, Elon Musk, Fellow of the Royal Society, feminist movement, Filter Bubble, Flash crash, Gerolamo Cardano, gig economy, Gödel, Escher, Bach, invention of the wheel, invisible hand, Jacquard loom, Jacques de Vaucanson, John Harrison: Longitude, John von Neumann, Kenneth Arrow, low skilled workers, Mark Zuckerberg, mass immigration, meta analysis, meta-analysis, mutually assured destruction, natural language processing, new economy, On the Economy of Machinery and Manufactures, p-value, pattern recognition, Paul Samuelson, performance metric, Pierre-Simon Laplace, precariat, profit maximization, profit motive, Silicon Valley, social intelligence, statistical model, Stephen Hawking, stochastic process, telemarketer, The Bell Curve by Richard Herrnstein and Charles Murray, The Future of Employment, the scientific method, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Thomas Bayes, Thomas Malthus, traveling salesman, Turing machine, Turing test, twin studies, Vilfredo Pareto, Von Neumann architecture, women in the workforce

But the restriction of passing notes through a wall remained, as it was important for the judge not to consider anything except written symbols as communication. The problem is, Turing’s wall changes what we call ‘communication’ particularly in the human sense of the word, which involves a great deal more than a disembodied, mute exchange of abstract symbols. While Turing was writing about his famous test, Claude Shannon, an American code-breaker and electrical engineer, was theorizing on purely symbolic communications. At Bell Laboratories Shannon developed information theory, a set of ideas that are vital to every modern electronic communication and computation device, because they make reliable data transmission possible, not just between one smartphone and another, or a media provider and a smart TV, but between memory, CPU, hard drive and every other part of a computer, in every computer on Earth.5 Both early computers and telecommunication devices had to send signals (we’ll call them messages for now) down wires, or through the air on radio waves.

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Even attendees of the cybernetics conference had doubts about this profound shift in the meaning of these powerful words, and the simultaneous abandonment of the concept of meaning itself. One attendee, the physicist, philosopher and AI pioneer Heinz von Foerster, commented: I wanted to call the whole of what they called information theory signal theory, because information was not yet there. There were ‘beep beeps’ but that was all, no information. The moment one transforms that set of signals into other signals our brains can make an understanding of, then information is born—it’s not in the beeps. Yet information theory is now ubiquitous not only in engineering communication theory, and every single aspect of computing and telecommunications, but in ‘deep’ AI, where algorithms derived from this theory are often used as a means of deriving representations from data, based on probabilistic assumptions.

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The connections are numerous, from the representation of thinking as the ‘if–then’ rules of Aristotelian logic, to the modelling of uncertainty based on calculations drawn from dice games, through the reduction of evolution to a philosophy of ‘survival of the fittest’, to the attempt to capture complex human characteristics like ‘intelligence’ in numbers like IQ, to the transformation and reduction of human artisanship into discrete tasks neatly divided to fit mass-manufacturing processes, through an unassailable faith that free markets generate spontaneous order, to viewing the living brain as a simple, synaptic computer, to a staggering reduction of the subtle meanings of language to the bit transmissions of information theory. Each of these simplifications arose in a particular historical and cultural context and has a direct connection to the conception and design of algorithms that now operate all around us today. Just as algorithms have emerged from various historical and cultural contexts, they are also a product engineered by people. At some point, a human being touches almost every part of an algorithm, whether it’s finding the dataset the algorithm will work upon, manually tagging and classifying some of that data, deciding the parameters that control the algorithm, determining its goals and evaluating its performance.

pages: 378 words: 110,518

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Postcapitalism: A Guide to Our Future
** by
Paul Mason

Alfred Russel Wallace, bank run, banking crisis, banks create money, Basel III, basic income, Bernie Madoff, Bill Gates: Altair 8800, bitcoin, Branko Milanovic, Bretton Woods, BRICs, British Empire, business cycle, business process, butterfly effect, call centre, capital controls, Cesare Marchetti: Marchetti’s constant, Claude Shannon: information theory, collaborative economy, collective bargaining, Corn Laws, corporate social responsibility, creative destruction, credit crunch, currency manipulation / currency intervention, currency peg, David Graeber, deglobalization, deindustrialization, deskilling, discovery of the americas, Downton Abbey, drone strike, en.wikipedia.org, energy security, eurozone crisis, factory automation, financial repression, Firefox, Fractional reserve banking, Frederick Winslow Taylor, full employment, future of work, game design, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, late capitalism, low skilled workers, market clearing, means of production, Metcalfe's law, microservices, money: store of value / unit of account / medium of exchange, mortgage debt, Network effects, new economy, Norbert Wiener, Occupy movement, oil shale / tar sands, oil shock, Paul Samuelson, payday loans, Pearl River Delta, post-industrial society, precariat, price mechanism, profit motive, quantitative easing, race to the bottom, RAND corporation, rent-seeking, reserve currency, RFID, Richard Stallman, Robert Gordon, Robert Metcalfe, secular stagnation, sharing economy, Stewart Brand, structural adjustment programs, supply-chain management, The Future of Employment, the scientific method, The Wealth of Nations by Adam Smith, Transnistria, union organizing, universal basic income, urban decay, urban planning, Vilfredo Pareto, wages for housework, WikiLeaks, women in the workforce

Competition and patent ownership issues were put on hold.20 These were remarkable things to achieve within capitalism: to treat research as public property, to suppress competition and to plan not just production but the direction of research. And though the USA perfected it, all major combatant states attempted it. The result was to stimulate an unprecedented culture of cross-fertilization in strategic disciplines. The new approach inserted maths and science into the heart of the industrial process; economics and data management into political decision-making. It was the OSRD that took Claude Shannon, the founder of information theory, out of Princeton and put him into Bell Labs to design algorithms for anti-aircraft guns.21 There, he would meet Alan Turing and discuss the possibility of ‘thinking machines’. Turing, too, had been scooped out of academia by the British government to run the Enigma codebreaking operation at Bletchley Park. This culture of innovation survived the transition to peacetime, even as individual corporations tried to monopolize the results and scrapped over patent rights.

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But one key technology was invisible: information. Though the ‘information economy’ lay decades in the future, the post-war economies saw information used on an industrial scale. It flowed as science, as management theory, as data, as mass communications and even – in a few hallowed places – out of a computer and into a tray of folding paper. A transistor is simply a switch with no moving parts. Information theory plus transistors gives you the ability to automate physical processes. So factories throughout the West were re-tooled with semi-automated machinery: pneumatic presses, drills, cutters, lathes, sewing machines and production lines. What they lacked was sophisticated feedback mechanisms: electronic sensors and automated logic systems were so crude that the latter used compressed air to do what we now do with iPhone apps.

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Deloitte, who did these calculations, describes the falling price of basic info-tech as exponential: ‘The current pace of technological advance is unprecedented in history and shows no signs of stabilizing as other historical technological innovations, such as electricity, eventually did.’26 It has become commonplace to think of information as ‘immaterial’. Norbert Wiener, one of the founders of information theory once claimed: ‘Information is information, not matter or energy. No materialism which does not admit this can survive at the present day.’27 But this is a fallacy. In 1961, IBM physicist Rolf Landauer proved, logically, that information is physical.28 He wrote: ‘Information is not a disembodied abstract entity; it is always tied to a physical representation. This ties the handling of information to all the possibilities and restrictions of our real physical world, its laws of physics and its storehouse of available parts.’29 Specifically, he showed that information processing consumes energy and it should be possible to measure the amount of energy used in deleting one ‘bit’ of information.

pages: 332 words: 109,213

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The Scientist as Rebel
** by
Freeman Dyson

Albert Einstein, Asilomar, British Empire, Claude Shannon: information theory, dark matter, double helix, Edmond Halley, Ernest Rutherford, experimental subject, Fellow of the Royal Society, From Mathematics to the Technologies of Life and Death, Henri Poincaré, Isaac Newton, Johannes Kepler, John von Neumann, kremlinology, Mikhail Gorbachev, Norbert Wiener, Paul Erdős, Richard Feynman, Ronald Reagan, Silicon Valley, Stephen Hawking, Thomas Kuhn: the structure of scientific revolutions, traveling salesman, undersea cable

In spite of his original intentions, cybernetics became a theory of analog processes. Meanwhile, also in 1948, Claude Shannon published his classic pair of papers with the title “A Mathematical Theory of Communication,” in The Bell System Technical Journal. Shannon’s theory was a theory of digital communication, using many of Wiener’s ideas but applying them in a new direction. Shannon’s theory was mathematically elegant, clear, and easy to apply to practical problems of communication. It was far more user-friendly than cybernetics. It became the basis of a new discipline called “information theory.” During the next ten years, digital computers began to operate all over the world, and analog computers rapidly became obsolete. Electronic engineers learned information theory, the gospel according to Shannon, as part of their basic training, and cybernetics was forgotten.

pages: 396 words: 107,814

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Is That a Fish in Your Ear?: Translation and the Meaning of Everything
** by
David Bellos

Clapham omnibus, Claude Shannon: information theory, Douglas Hofstadter, Etonian, European colonialism, haute cuisine, invention of the telephone, invention of writing, natural language processing, Republic of Letters, Sapir-Whorf hypothesis, speech recognition

In a famous memorandum written in July 1949, Warren Weaver, then a senior official with the Rockefeller Foundation, found it “very tempting to say that a book written in Chinese is simply a book in English which was coded into the ‘Chinese code.’ If we have useful methods for solving almost any cryptographic problem, may it not be that with proper interpretation we already have useful methods for translation?”2 Weaver was aware of the pioneering work of Claude Shannon and others in the nascent disciplines of information theory and cybernetics and could see that if language could be treated as a code, then there would be huge development contracts available for mathematicians, logicians, and engineers working on the new and exciting number-crunching devices that had only just acquired their modern name of “computers.” But the temptation to see “language as code” comes from much deeper sources than just an intuition that it would create interesting jobs for very smart boys.

pages: 396 words: 117,149

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The Master Algorithm: How the Quest for the Ultimate Learning Machine Will Remake Our World
** by
Pedro Domingos

Albert Einstein, Amazon Mechanical Turk, Arthur Eddington, basic income, Bayesian statistics, Benoit Mandelbrot, bioinformatics, Black Swan, Brownian motion, cellular automata, Claude Shannon: information theory, combinatorial explosion, computer vision, constrained optimization, correlation does not imply causation, creative destruction, crowdsourcing, Danny Hillis, data is the new oil, double helix, Douglas Hofstadter, Erik Brynjolfsson, experimental subject, Filter Bubble, future of work, global village, Google Glasses, Gödel, Escher, Bach, information retrieval, job automation, John Markoff, John Snow's cholera map, John von Neumann, Joseph Schumpeter, Kevin Kelly, lone genius, mandelbrot fractal, Mark Zuckerberg, Moneyball by Michael Lewis explains big data, Narrative Science, Nate Silver, natural language processing, Netflix Prize, Network effects, NP-complete, off grid, P = NP, PageRank, pattern recognition, phenotype, planetary scale, pre–internet, random walk, Ray Kurzweil, recommendation engine, Richard Feynman, scientific worldview, Second Machine Age, self-driving car, Silicon Valley, social intelligence, speech recognition, Stanford marshmallow experiment, statistical model, Stephen Hawking, Steven Levy, Steven Pinker, superintelligent machines, the scientific method, The Signal and the Noise by Nate Silver, theory of mind, Thomas Bayes, transaction costs, Turing machine, Turing test, Vernor Vinge, Watson beat the top human players on Jeopardy!, white flight, zero-sum game

The simplest algorithm is: flip a switch. The state of one transistor is one bit of information: one if the transistor is on, and zero if it’s off. One bit somewhere in your bank’s computers says whether your account is overdrawn or not. Another bit somewhere in the Social Security Administration’s computers says whether you’re alive or dead. The second simplest algorithm is: combine two bits. Claude Shannon, better known as the father of information theory, was the first to realize that what transistors are doing, as they switch on and off in response to other transistors, is reasoning. (That was his master’s thesis at MIT—the most important master’s thesis of all time.) If transistor A turns on only when transistors B and C are both on, it’s doing a tiny piece of logical reasoning. If A turns on when either B or C is on, that’s another tiny logical operation.

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For more information, please contact the Special Markets Department at the Perseus Books Group, 2300 Chestnut Street, Suite 200, Philadelphia, PA 19103, or call (800) 810-4145, ext. 5000, or e-mail special.markets@perseusbooks.com. Library of Congress Cataloging-in-Publication Data Domingos, Pedro. The master algorithm: how the quest for the ultimate learning machine will remake our world / Pedro Domingos. pages cm Includes index. ISBN 978-0-465-06192-1 (ebook) 1. Knowledge representation (Information theory) 2. Artificial intelligence—Social aspects. 3. Artificial intelligence—Philosophy. 4. Cognitive science—Mathematics. 5. Algorithms. I. Title. Q387.D66 2015 003′54—dc23 2015007615 10 9 8 7 6 5 4 3 2 1 TO THE MEMORY OF MY SISTER RITA, WHO LOST HER BATTLE WITH CANCER WHILE I WAS WRITING THIS BOOK The grand aim of science is to cover the greatest number of experimental facts by logical deduction from the smallest number of hypotheses or axioms.

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We repeat this for each new node we induce until all the examples in a branch have the same class, at which point we label that branch with the class. One salient question is how to pick the best attribute to test at a node. Accuracy—the number of correctly predicted examples—doesn’t work very well, because we’re not trying to predict a particular class; rather, we’re trying to gradually separate the classes until each branch is “pure.” This brings to mind the concept of entropy from information theory. The entropy of a set of objects is a measure of the amount of disorder in it. If a group of 150 people includes 50 Republicans, 50 Democrats, and 50 independents, its political entropy is maximum. On the other hand, if they’re all Republican then the entropy is zero (as far as party affiliation goes). So to learn a good decision tree, we pick at each node the attribute that on average yields the lowest class entropy across all its branches, weighted by how many examples go into each branch.

pages: 298 words: 43,745

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Understanding Sponsored Search: Core Elements of Keyword Advertising
** by
Jim Jansen

AltaVista, barriers to entry, Black Swan, bounce rate, business intelligence, butterfly effect, call centre, Claude Shannon: information theory, complexity theory, correlation does not imply causation, en.wikipedia.org, first-price auction, information asymmetry, information retrieval, intangible asset, inventory management, life extension, linear programming, longitudinal study, megacity, Nash equilibrium, Network effects, PageRank, place-making, price mechanism, psychological pricing, random walk, Schrödinger's Cat, sealed-bid auction, search engine result page, second-price auction, second-price sealed-bid, sentiment analysis, social web, software as a service, stochastic process, telemarketer, the market place, The Present Situation in Quantum Mechanics, the scientific method, The Wisdom of Crowds, Vickrey auction, Vilfredo Pareto, yield management

In other words, the ability of technology to provide information has increased exponentially (i.e., Moore’s Law), but the ability of humans to process it has remained stable. Potpourri: Why are most query terms short? Some of it may have to do with simple information needs. It may have to do with the cognitive limits of our memory (i.e., the human processing and storage power). (Continued) 42 Understanding Sponsored Search Based on Claude Shannon and Norbert Weiner’s information theory research [21], Harvard psychologist George A. Miller [22] proposed the theoretical construct, known as the Magical Number Seven, Plus or Minus Two. The gist of the construct is that the typical human can process about seven chunks of similar information at any instant in time (sometimes a couple more, sometimes a couple fewer). The concept of chunking is now a foundational element in many theories of memory.

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As wealth rises, consumers will move away from less costly, perhaps inferior, goods and services, choosing higher-priced alternatives for a variety of perceived benefits, such as quality or status. 92 Understanding Sponsored Search Concerning their perceived lack of searching, consumers have a trade-off between the cost of search, usually measured by time, and the benefit of that search [9]. A strict consumer search model assumes that consumers are likely to search for information as long as they believe that the benefits of acquiring information outweigh the cost of information search as indicated in the economics of information theory [11]. However, a more workable consumer search model should assume that consumers are likely to search for information until they believe they have a reasonable solution, regardless of the cost-benefit ratio. This behavior, again, illustrates the concept of satisficing [12, 13] and the principle of least effort [14]. Additionally, the searcher may actually be doing more searching then it first appears from just looking at their online activities.

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., 116 Hunter, Lee, 19 IdeaLab, 11 imperfect information, 179, 194 impression, 12, 14, 24, 75–77, 133, 209 impulse buying, 93, 97–98 income effect, 91 information access, 54–55, 70, 72 information acquisition, 35, 63 information asymmetry, 63–64 information foraging, 42, 44, 63, 66–67, 70, 72, 80, 96, 213 information foraging theory, 42, 67, 70 information imbalance, 63–64 information load, 63 275 information obtainability, 42–43, 49, 70–71, 211, 213 information overload, 68 information processing theory, 65, 94, 96 information retrieval, 2, 20, 37, 51, 70–71, 154, 211 information scent, 66–67 information science, xiii, 14, 35, 71, 87 information searching, 20, 37, 211 information theory, 42, 92 informational, xi, 44–46, 64, 93, 96 informivore, 66 Infoseek, 38 Intangible content, 131 internal information search, 88 Internet television, 224 iProspect, xvi, 167 iWon, 21 Jansen, Bernard J., 20, 44, 113–114, 116, 118, 158 Johnson, Samuel, 229 Kamangar, Salar, 181 key drivers of marketing, 128 key performance indicators, 24. SeeÂ€key performance indicators Knowledge uncertainty, 99 known-unknown and aware-unaware, 150 Kotler, P., 128, 138 Kraatz, Mark, 12 La Gazette de France, 122 law of diminishing marginal returns, 50 law of probability, 165 Levine, Rick, 129 Levinson, Danny, 44 Lewis, E.

pages: 492 words: 118,882

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The Blockchain Alternative: Rethinking Macroeconomic Policy and Economic Theory
** by
Kariappa Bheemaiah

accounting loophole / creative accounting, Ada Lovelace, Airbnb, algorithmic trading, asset allocation, autonomous vehicles, balance sheet recession, bank run, banks create money, Basel III, basic income, Ben Bernanke: helicopter money, bitcoin, blockchain, Bretton Woods, business cycle, business process, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, cashless society, cellular automata, central bank independence, Claude Shannon: information theory, cloud computing, cognitive dissonance, collateralized debt obligation, commoditize, complexity theory, constrained optimization, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crowdsourcing, cryptocurrency, David Graeber, deskilling, Diane Coyle, discrete time, disruptive innovation, distributed ledger, diversification, double entry bookkeeping, Ethereum, ethereum blockchain, fiat currency, financial innovation, financial intermediation, Flash crash, floating exchange rates, Fractional reserve banking, full employment, George Akerlof, illegal immigration, income inequality, income per capita, inflation targeting, information asymmetry, interest rate derivative, inventory management, invisible hand, John Maynard Keynes: technological unemployment, John von Neumann, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, knowledge economy, large denomination, liquidity trap, London Whale, low skilled workers, M-Pesa, Marc Andreessen, market bubble, market fundamentalism, Mexican peso crisis / tequila crisis, MITM: man-in-the-middle, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, natural language processing, Network effects, new economy, Nikolai Kondratiev, offshore financial centre, packet switching, Pareto efficiency, pattern recognition, peer-to-peer lending, Ponzi scheme, precariat, pre–internet, price mechanism, price stability, private sector deleveraging, profit maximization, QR code, quantitative easing, quantitative trading / quantitative ﬁnance, Ray Kurzweil, Real Time Gross Settlement, rent control, rent-seeking, Satoshi Nakamoto, Satyajit Das, savings glut, seigniorage, Silicon Valley, Skype, smart contracts, software as a service, software is eating the world, speech recognition, statistical model, Stephen Hawking, supply-chain management, technology bubble, The Chicago School, The Future of Employment, The Great Moderation, the market place, The Nature of the Firm, the payments system, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, too big to fail, trade liberalization, transaction costs, Turing machine, Turing test, universal basic income, Von Neumann architecture, Washington Consensus

It consisted of multiple rotating disks and cylinders driven by electric motors linked together with metal rods that were manually set up (sometime taking up to two days) to solve any differential equation problem. Vannevar had recruited Claude Shannon (known today as the father of information theory), a young graduate who specialised symbolic logic. Although the Differential Analyzer was a mechanical machine with moving parts, Shannon identified it as a complicated control circuit with relays. Shannon thus began creating the first generation of circuit designs and in the process, was able to transform information into a quantity that could be subjected to manipulation by a machine. Using Boolean algebra, logic gates and binary arithmetic (bits and bytes), Shannon was able to represent all types of information by numbers and in the process created the foundations for today’s modern information theory. It is for this reason that he is referred to as the father of information technology. 218 Chapter 4 ■ Complexity Economics: A New Way to Witness Capitalism As World War Two began in 1939, these advances in information technology had been adopted by various militaries to communicate sensitive information.

pages: 509 words: 132,327

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Rise of the Machines: A Cybernetic History
** by
Thomas Rid

1960s counterculture, A Declaration of the Independence of Cyberspace, agricultural Revolution, Albert Einstein, Alistair Cooke, Apple II, Apple's 1984 Super Bowl advert, back-to-the-land, Berlin Wall, British Empire, Brownian motion, Buckminster Fuller, business intelligence, Charles Lindbergh, Claude Shannon: information theory, conceptual framework, connected car, domain-specific language, Douglas Engelbart, Douglas Engelbart, dumpster diving, Extropian, full employment, game design, global village, Haight Ashbury, Howard Rheingold, Jaron Lanier, job automation, John Markoff, John von Neumann, Kevin Kelly, Kubernetes, Marshall McLuhan, Menlo Park, Mitch Kapor, Mother of all demos, new economy, New Journalism, Norbert Wiener, offshore financial centre, oil shale / tar sands, pattern recognition, RAND corporation, Silicon Valley, Simon Singh, speech recognition, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, technoutopianism, Telecommunications Act of 1996, telepresence, The Hackers Conference, Vernor Vinge, Whole Earth Catalog, Whole Earth Review, Y2K, Yom Kippur War, Zimmermann PGP

Ron Hubbard, July 8, 1950, Norbert Wiener Papers, MC 22, box 8 (“Correspondence 1950”), folder 121, Institute Archives and Special Collections, MIT Libraries, Cambridge, MA. 9.L. Ron Hubbard to Norbert Wiener, July 26, 1950, Norbert Wiener Papers, MC 22, box 8 (“Correspondence 1950”), folder 121, Institute Archives and Special Collections, MIT Libraries, Cambridge, MA. 10.L. Ron Hubbard to Claude Shannon, December 6, 1949, Claude Elwood Shannon Papers, box 1, MSS84831, Library of Congress, Washington, DC. 11.Norbert Wiener to William Schlecht, July 8, 1950. 12.Norbert Wiener, “Some Maxims for Biologists and Psychologists,” Dialectica 4, no. 3 (September 15, 1950): 190. 13.Ibid., 191. 14.Ibid. 15.William Grey Walter, The Living Brain (London: Duckworth, 1953), 223. 16.Ibid. 17.Maxwell Maltz, Psycho-Cybernetics (New York: Pocket Books/Simon & Schuster, 1969), cover. 18.The figure of thirty million is provided by the book’s publisher.

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Unsurprisingly, the breakthrough happened in the San Francisco Bay Area of the mid-1970s, with its inspiring mix of counterculture and tech entrepreneurship. These pioneers were Whitfield Diffie and Martin Hellman of Stanford University, and Ralph Merkle of UC Berkeley. Their discovery resembled what the British spy agency had already found in secret. In November 1976, a history-changing article appeared in an obscure journal, IEEE Transactions on Information Theory. It was titled “New Directions in Cryptography.” Diffie and Hellman knew that computers would be coming to the people, as Stewart Brand had just reported from the mesmerized Spacewar players on their own campus. And they knew that these computers would be networked. “The development of computer controlled communication networks promises effortless and inexpensive contact between people or computers on opposite sides of the world,” they wrote in the introduction to their landmark paper.

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NM-1B (Washington, DC: Historic American Engineering Record, National Park Service, Department of the Interior, 1986), sheet 1-6. 2.Malcolm Macdonald and Viorel Bedesco, The International Handbook of Space Technology (Heidelberg: Springer, 2014), 8. 3.Norbert Wiener, “A Scientist Rebels,” Atlantic 179, no. 1 (January 1947): 46. 4.Norbert Wiener, I Am a Mathematician (Cambridge, MA: MIT Press, 1956), 308. 5.Ibid. 6.Ibid. 7.Wiesner, quoted in David Jerison, I. M. Singer, and Daniel W. Strook, eds., The Legacy of Norbert Wiener: A Centennial Symposium in Honor of the 100th Anniversary of Norbert Wiener’s Birth, October 8–14, 1994, Massachusetts Institute of Technology, Cambridge, Massachusetts (Providence, RI: American Mathematical Society, 1997), 19. 8.Entropy is a fundamental and related concept in physics as well as in information theory. See James Gleick, The Information (New York: Pantheon, 2011), chap. 9. 9.Norbert Wiener, The Human Use of Human Beings (New York: Houghton Mifflin, 1954), 263. 10.Ibid., 33. 11.Ibid., 24. 12.Norbert Wiener, Cybernetics (Cambridge, MA: MIT Press, 1948), 43. 13.Norbert Wiener, God and Golem, Inc. (Cambridge, MA: MIT Press, 1963), 74. 14.Ibid., 76. 15.Ibid. 16.Wiener, Cybernetics, 157–58; Harry Davis, “An Interview with Norbert Wiener,” New York Times, April 10, 1949, BR23. 17.William Laurence, “Cybernetics, a New Science, Seeks the Common Elements in Human and Machine,” New York Times, December 19, 1948, E9. 18.John Pfeiffer, “The Stuff That Dreams Are Made on: Cybernetics,” New York Times, January 23, 1949, BR27. 19.

pages: 437 words: 132,041

**
Alex's Adventures in Numberland
** by
Alex Bellos

Andrew Wiles, Antoine Gombaud: Chevalier de Méré, beat the dealer, Black Swan, Black-Scholes formula, Claude Shannon: information theory, computer age, Daniel Kahneman / Amos Tversky, Edward Thorp, family office, forensic accounting, game design, Georg Cantor, Henri Poincaré, Isaac Newton, Johannes Kepler, lateral thinking, Myron Scholes, pattern recognition, Paul Erdős, Pierre-Simon Laplace, probability theory / Blaise Pascal / Pierre de Fermat, random walk, Richard Feynman, Rubik’s Cube, SETI@home, Steve Jobs, The Bell Curve by Richard Herrnstein and Charles Murray, traveling salesman

If we knew exactly the speed and angle of the flip, the density of the air and any other relevant physical data, we would be able to calculate exactly the face on which it would land. In the mid 1950s a young mathematician named Ed Thorp began to ponder what set of information would be required to predict where a ball would land in roulette. Thorp was helped in his endeavour by Claude Shannon, his colleague at the Massachusetts Institute of Technology. He couldn’t have wished for a better co-conspirator. Shannon was a prolific inventor with a garage full of electronic and mechanical gadgets. He was also one of the most important mathematicians in the world, as the father of information theory, a crucial academic breakthrough that led to the development of the computer. The men bought a roulette wheel and conducted experiments in Shannon’s basement. They discovered that if they knew the speed of the ball as it went around the stationary outer rim, and the speed of the inner wheel (which is spun in the opposite direction of the ball), they could make pretty good estimates regarding which segment of the wheel the ball would fall in.

pages: 416 words: 129,308

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The One Device: The Secret History of the iPhone
** by
Brian Merchant

Airbnb, animal electricity, Apple II, Apple's 1984 Super Bowl advert, citizen journalism, Claude Shannon: information theory, computer vision, conceptual framework, Douglas Engelbart, Dynabook, Edward Snowden, Elon Musk, Ford paid five dollars a day, Frank Gehry, global supply chain, Google Earth, Google Hangouts, Internet of things, Jacquard loom, John Gruber, John Markoff, Jony Ive, Lyft, M-Pesa, MITM: man-in-the-middle, more computing power than Apollo, Mother of all demos, natural language processing, new economy, New Journalism, Norbert Wiener, offshore financial centre, oil shock, pattern recognition, peak oil, pirate software, profit motive, QWERTY keyboard, ride hailing / ride sharing, rolodex, Silicon Valley, Silicon Valley startup, skunkworks, Skype, Snapchat, special economic zone, speech recognition, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Tim Cook: Apple, Turing test, uber lyft, Upton Sinclair, Vannevar Bush, zero day

With the resonant opening line “I propose to consider the question, ‘Can machines think?’” in his 1950 paper “Computing Machinery and Intelligence,” Alan Turing framed much of the debate to come. That work discusses his famous Imitation Game, now colloquially known as the Turing Test, which describes criteria for judging whether a machine may be considered sufficiently “intelligent.” Claude Shannon, the communication theorist, published his seminal work on information theory, introducing the concept of the bit as well as a language through which humans might speak to computers. In 1956, Stanford’s John McCarthy and his colleagues coined the term artificial intelligence for a new discipline, and we were off to the races. Over the next decade, as the scientific investigation of AI began to draw interest from the public and as, simultaneously, computer terminals became a more ubiquitous machine-human interface, the two future threads—screen-based interfaces and AI—wound into one, and the servile human-shaped robots of yore became disembodied.

pages: 573 words: 157,767

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From Bacteria to Bach and Back: The Evolution of Minds
** by
Daniel C. Dennett

Ada Lovelace, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Andrew Wiles, Bayesian statistics, bioinformatics, bitcoin, Build a better mousetrap, Claude Shannon: information theory, computer age, computer vision, double entry bookkeeping, double helix, Douglas Hofstadter, Elon Musk, epigenetics, experimental subject, Fermat's Last Theorem, Gödel, Escher, Bach, information asymmetry, information retrieval, invention of writing, Isaac Newton, iterative process, John von Neumann, Menlo Park, Murray Gell-Mann, Necker cube, Norbert Wiener, pattern recognition, phenotype, Richard Feynman, Rodney Brooks, self-driving car, social intelligence, sorting algorithm, speech recognition, Stephen Hawking, Steven Pinker, strong AI, The Wealth of Nations by Adam Smith, theory of mind, Thomas Bayes, trickle-down economics, Turing machine, Turing test, Watson beat the top human players on Jeopardy!, Y2K

Gibson, ecological psychologist, 1966) 4.The task of a nervous system is to extract information from the environment to use in modulating or guiding successful behavior. 5.We are drowning in information. 6.We no longer can control our personal information. 7.The task of the Central Intelligence Agency is to gather information about our enemies. 8.Humint, intelligence or information gathered by human agents in clandestine interaction with other human beings, is much more important than the information obtainable by satellite surveillance and other high-tech methods. Claude Shannon’s mathematical theory of information (Shannon 1948; Shannon and Weaver 1949) is duly celebrated as the scientific backbone that grounds and legitimizes all the talk about information that engulfs us, but some of that talk involves a different conception of information that is only indirectly addressed by Shannon’s theory. Shannon’s theory is, at its most fundamental, about the statistical relationship between different states of affairs in the world: What can be gleaned (in principle) about state A from the observation of state B?

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Yes, yes, yes = 111 = 7 in binary notation; it takes three bits to specify a number between 0 and 8. A byte is eight bits, and a megabyte is eight million bits, so you can send a 2.5 megabyte monochrome bitmap picture file by playing Twenty Million Questions. (Is the first pixel white? …) Shannon’s information theory is a great advance for civilization because semantic information is so important to us that we want to be able to use it effectively, store it without loss, move it, transform it, share it, hide it. Informational artifacts abound—telephones, books, maps, recipes—and information theory itself began as an artifact for studying important features of those artifacts. What began as an engineering discipline has subsequently proven useful to physicists, biologists, and others not concerned with the properties of informational artifacts.

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You can send “perfect” information about the widget, specifying its every atom, in a file of only umpteen million zetabytes. Today a widget, tomorrow the world. The idea, generalized, of the whole universe being exhaustively (?) describable in one cosmic bitmap lies at the heart of various largely speculative but fascinating proposals in physics. And of course it doesn’t stop at big old atoms, a relatively “low-res” recipe for reality these days. Such an application of Shannon information theory does permit, “in principle” but not remotely in practice, saying exactly how much (Shannon) information there is in the cubic meter of ocean and ocean floor surrounding a particular clam, for instance, but it says nothing about how much of this information—a Vanishingly small portion—is semantic information for the clam.36 Back to the theft of the widget design. The CAD-CAM file, of suitably high resolution, could be stored on a tiny digital memory device that might be safely swallowed.

pages: 660 words: 141,595

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Data Science for Business: What You Need to Know About Data Mining and Data-Analytic Thinking
** by
Foster Provost,
Tom Fawcett

Albert Einstein, Amazon Mechanical Turk, big data - Walmart - Pop Tarts, bioinformatics, business process, call centre, chief data officer, Claude Shannon: information theory, computer vision, conceptual framework, correlation does not imply causation, crowdsourcing, data acquisition, David Brooks, en.wikipedia.org, Erik Brynjolfsson, Gini coefficient, information retrieval, intangible asset, iterative process, Johann Wolfgang von Goethe, Louis Pasteur, Menlo Park, Nate Silver, Netflix Prize, new economy, p-value, pattern recognition, placebo effect, price discrimination, recommendation engine, Ronald Coase, selection bias, Silicon Valley, Skype, speech recognition, Steve Jobs, supply-chain management, text mining, The Signal and the Noise by Nate Silver, Thomas Bayes, transaction costs, WikiLeaks

Fortunately, for classification problems we can address all the issues by creating a formula that evaluates how well each attribute splits a set of examples into segments, with respect to a chosen target variable. Such a formula is based on a purity measure. The most common splitting criterion is called information gain, and it is based on a purity measure called entropy. Both concepts were invented by one of the pioneers of information theory, Claude Shannon, in his seminal work in the field (Shannon, 1948). Entropy is a measure of disorder that can be applied to a set, such as one of our individual segments. Consider that we have a set of properties of members of the set, and each member has one and only one of the properties. In supervised segmentation, the member properties will correspond to the values of the target variable. Disorder corresponds to how mixed (impure) the segment is with respect to these properties of interest.

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John Wiley and Sons Ltd., West Sussex, England. Letunic, & Bork (2006). Interactive tree of life (iTOL): an online tool for phylogenetic tree display and annotation. Bioinformatics, 23 (1). Lin, J.-H., & Vitter, J. S. (1994). A theory for memory-based learning. Machine Learning, 17, 143–167. Lloyd, S. P. (1982). Least square quantization in PCM. IEEE Transactions on Information Theory, 28 (2), 129–137. MacKay, D. (2003). Information Theory, Inference and Learning Algorithms, Chapter 20. An Example Inference Task: Clustering. Cambridge University Press. MacQueen, J. B. (1967). Some methods for classification and analysis of multivariate observations. In Proceedings of 5th Berkeley Symposium on Mathematical Statistics and Probability, pp. 281–297. University of California Press. Malin, B. & Sweeney, L. (2004).

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Comp Physics Comm, 67, 159–182. Clemons, E., & Thatcher, M. (1998). Capital One: Exploiting and Information-based Strategy. In Proceedings of the 31st Hawaii International Conference on System Sciences. Cohen, L., Diether, K., & Malloy, C. (2012). Legislating Stock Prices. Harvard Business School Working Paper, No. 13–010. Cover, T., & Hart, P. (1967). Nearest neighbor pattern classification. Information Theory, IEEE Transactions on, 13(1), 21–27. Crandall, D., Backstrom, L., Cosley, D., Suri, S., Huttenlocher, D., & Kleinberg, J. (2010). Inferring social ties from geographic coincidences. Proceedings of the National Academy of Sciences, 107(52), 22436-22441. Deza, E., & Deza, M. (2006). Dictionary of distances. Elsevier Science. Dietterich, T. G. (1998). Approximate statistical tests for comparing supervised classification learning algorithms.

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The Greatest Show on Earth: The Evidence for Evolution
** by
Richard Dawkins

Alfred Russel Wallace, Andrew Wiles, Arthur Eddington, back-to-the-land, Claude Shannon: information theory, correlation does not imply causation, Craig Reynolds: boids flock, Danny Hillis, David Attenborough, discovery of DNA, Dmitri Mendeleev, double helix, en.wikipedia.org, epigenetics, experimental subject, if you see hoof prints, think horses—not zebras, invisible hand, Louis Pasteur, out of africa, phenotype, Thomas Malthus

* It is with horrified fascination that I return, as if scratching an itch or pressing a toothache, to the poll, documented in the Appendix, suggesting that 19% of British people don’t know what a year is, and think the Earth orbits the sun once per month. Even of those who understand what a year is, a larger percentage has no understanding of what causes seasons, presuming, with rampant Northern Hemisphere chauvinism, that we are closest to the sun in June and furthest away in December. * ‘Every Schoolboy Knows’ (and every schoolgirl can prove it by Euclidean geometry). * It is no accident that Claude Shannon, when developing his metric of ‘information’, which is itself a measure of statistical improbability, lit upon exactly the same mathematical formula that Ludwig Boltzman had developed for entropy in the previous century. * Insects, crustaceans, spiders, centipedes, etc. † For example, a mutation in the leg of a millipede will be mirrored on both sides, and probably repeated the length of the body as well.

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One consequence of using e rather than, say, 2, as the factor of choice, is that you can calculate the darwins directly by subtracting natural logarithms from one another. Other scientists have proposed, as a unit of evolutionary rate, the haldane. * I have even been called an ‘ultra-Darwinist’, a gibe that I find less insulting than its coiners perhaps intended. * ‘Degenerate’ is not the same (though the two terms are often confused) as ‘redundant’, another technical term of Information Theory. A redundant code is one in which the same message is conveyed more than once (e.g. ‘She is a female woman’ conveys the message of her sex three times). Redundancy is used by engineers to guard against transmission errors. A degenerate code is one in which more than one ‘word’ is used to mean the same thing. In the genetic code, for example, CUC and CUG both spell ‘Leucine’: a mutation from CUC to CUG therefore makes no difference.

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The Art of Computer Programming: Sorting and Searching
** by
Donald Ervin Knuth

card file, Claude Shannon: information theory, complexity theory, correlation coefficient, Donald Knuth, double entry bookkeeping, Eratosthenes, Fermat's Last Theorem, G4S, information retrieval, iterative process, John von Neumann, linked data, locality of reference, Menlo Park, Norbert Wiener, NP-complete, p-value, Paul Erdős, RAND corporation, refrigerator car, sorting algorithm, Vilfredo Pareto, Yogi Berra, Zipf's Law

The resulting method yields fairly good trees (reportedly within 2 or 3 percent of the optimum), and it requires only 0{n) units of space, O(n logn) units of time. In fact, M. Fredman has shown that O(n) units of time suffice, if suitable data structures are used [STOC 7 A975), 240-244]; see K. Mehlhorn, Data Structures and Algorithms 1 (Springer, 1984), Section 4.2. Optimum trees and entropy. The minimum cost is closely related to a mathematical concept called entropy, which was introduced by Claude Shannon in his seminal work on information theory [Bell System Tech. J. 27 A948), 379- 423, 623-656]. If pi, p2, ¦ ¦ ¦, pn are probabilities with pi +p2 H hpn = 1, we define the entropy H(pi,p2,... ,pn) by the formula H{pi,p2,---,Pn) = A8) Intuitively, if n events are possible and the kth event occurs with probability pk, we can imagine that we have received lg(l/pfc) bits of information when the kth 6.2.2 BINARY TREE SEARCHING 443 event has occurred.

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Pratt have observed that these comparisons need not involve the same key, and it may well be best to have a binary tree whose internal nodes specify either an equality test or a less-than test but not both. This situation would be interesting to explore as an alternative to the stated problem.) 34. [HM21] Show that the asymptotic value of the multinomial coefficient N piiV, p2N, ..., pnN as N —>• 00 is related to the entropy H(pi,p2,... ,pn)- 35. [HM22] Complete the proof of Theorem B by establishing the inequality B4). 36. [HM25] (Claude Shannon.) Let X and Y be random variables with finite ranges {xi,...,xm} and {yi,...,yn}, and let pi = Pt(X = Xi), qj = Pr(Y = %¦), rv,- = Pr(X = Xi and Y = Vj). Let H{X) = H{Pl,... ,pm) and H{Y) = H(qu. ..,qn) be the 458 SEARCHING 6.2.2 respective entropies of the variables singly, and let H(XY) — H(m,... ,rmn) be the entropy of their joint distribution. Prove that H{X) < H(XY) < H(X) + H{Y). [Hint: If / is any concave function, we have E f(X) < /(EX).] 37.

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If all the internal nodes of a comparison tree are at levels < k, it is obvious that there can be at most 2k external nodes in the tree. Hence, letting k = S(n), we have Since S(n) is an integer, we can rewrite this formula to obtain the lower bound S(n)>\\gn\]. A) Stirling's approximation tells us that [lgn!] =nlgn-n/ln2 + |lgn + 0(l), B) hence roughly n lg n comparisons are needed. 5.3.1 MINIMUM-COMPARISON SORTING 183 Relation A) is often called the information-theoretic lower bound, since cognoscenti of information theory would say that lg n\ "bits of information" are being acquired during a sorting process; each comparison yields at most one bit of information. Trees such as Fig. 34 have also been called "questionnaires"; their mathematical properties were first explored systematically in Claude Picard's book Theorie des Questionnaires (Paris: Gauthier-Villars, 1965). Of all the sorting methods we have seen, the three that require fewest com- comparisons are binary insertion (see Section 5.2.1), tree selection (see Section 5.2.3), and straight two-way merging (see Algorithm 5.2.4L).

pages: 685 words: 203,949

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The Organized Mind: Thinking Straight in the Age of Information Overload
** by
Daniel J. Levitin

airport security, Albert Einstein, Amazon Mechanical Turk, Anton Chekhov, Bayesian statistics, big-box store, business process, call centre, Claude Shannon: information theory, cloud computing, cognitive bias, complexity theory, computer vision, conceptual framework, correlation does not imply causation, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, delayed gratification, Donald Trump, en.wikipedia.org, epigenetics, Eratosthenes, Exxon Valdez, framing effect, friendly fire, fundamental attribution error, Golden Gate Park, Google Glasses, haute cuisine, impulse control, index card, indoor plumbing, information retrieval, invention of writing, iterative process, jimmy wales, job satisfaction, Kickstarter, life extension, longitudinal study, meta analysis, meta-analysis, more computing power than Apollo, Network effects, new economy, Nicholas Carr, optical character recognition, Pareto efficiency, pattern recognition, phenotype, placebo effect, pre–internet, profit motive, randomized controlled trial, Rubik’s Cube, shared worldview, Skype, Snapchat, social intelligence, statistical model, Steve Jobs, supply-chain management, the scientific method, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Thomas Bayes, Turing test, ultimatum game, zero-sum game

Separate research by Kahneman and Tversky shows that people are unable to ignore information that is not relevant to them, so there is a real neural cost of being presented with information you don’t care about and can’t use. Then the question becomes not one of how many things you can do at once, but how orderly you can make the information environment. There is considerable research into the difference in utility between simple and complex information. Claude Shannon, an electrical engineer who worked at Bell Laboratories, developed information theory in the 1940s. Shannon information theory is among the most important mathematical ideas of the twentieth century; it has profoundly affected computing and telecommunications, and is the basis for the compression of sound, image, and movie files (e.g., MP3, JPEG, and MP4 respectively). A fundamental problem in telecommunications, signaling, and security is how to transmit a message as briefly as possible, to pack the maximum amount of data into the minimum amount of time or space; this packing is called data compression.

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information you don’t care about and can’t use Kahneman, D., Slovic, P., & Tversky, A. (Eds.). (1982). Judgment under uncertainty: Heuristics and biases. Cambridge, UK: Cambridge University Press. developed information theory in the 1940s Shannon, C. E. (1948). A mathematical theory of communication. The Bell System Technical Journal, 27, 379–423, 623–656. See also, Cover, T. M., & Thomas, J. A. (2006). Elements of information theory (2nd ed.). New York, NY: Wiley-Interscience. and, Hartley, R. V. L. (1928). Transmission of information. The Bell System Technical Journal, 7(3), 535–563. Pierce, J. R. (1980) An introduction to information theory: Symbols, signals, and noise. New York, NY: Dover Publications. transmitted only 300–3300 hertz Anderson, H., & Yull, S. (2002). BTEC nationals—IT practioners tutor resource pack.

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This bandwidth limitation is most apparent if you try to listen to music over the telephone—the low frequencies of the bass and the high frequencies of cymbals are almost completely absent. Information theory came up in Chapter 1 in discussing the number of simultaneous conversations that a person can follow, and the information processing limits of human attention being estimated at around 120 bits per second. It is a way to quantify the amount of information contained in any transmission, instruction, or sensory stimulus. It can apply to music, speech, paintings, and military orders. The application of information theory generates a number that allows us to compare the amount of information contained in one transmission with that contained in another. Suppose that you want to convey instructions to someone on how to construct a chessboard.

pages: 829 words: 186,976

**
The Signal and the Noise: Why So Many Predictions Fail-But Some Don't
** by
Nate Silver

"Robert Solow", airport security, availability heuristic, Bayesian statistics, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, big-box store, Black Swan, Broken windows theory, business cycle, buy and hold, Carmen Reinhart, Claude Shannon: information theory, Climategate, Climatic Research Unit, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, computer age, correlation does not imply causation, Credit Default Swap, credit default swaps / collateralized debt obligations, cuban missile crisis, Daniel Kahneman / Amos Tversky, diversification, Donald Trump, Edmond Halley, Edward Lorenz: Chaos theory, en.wikipedia.org, equity premium, Eugene Fama: efficient market hypothesis, everywhere but in the productivity statistics, fear of failure, Fellow of the Royal Society, Freestyle chess, fudge factor, George Akerlof, global pandemic, haute cuisine, Henri Poincaré, high batting average, housing crisis, income per capita, index fund, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), Internet Archive, invention of the printing press, invisible hand, Isaac Newton, James Watt: steam engine, John Nash: game theory, John von Neumann, Kenneth Rogoff, knowledge economy, Laplace demon, locking in a profit, Loma Prieta earthquake, market bubble, Mikhail Gorbachev, Moneyball by Michael Lewis explains big data, Monroe Doctrine, mortgage debt, Nate Silver, negative equity, new economy, Norbert Wiener, PageRank, pattern recognition, pets.com, Pierre-Simon Laplace, prediction markets, Productivity paradox, random walk, Richard Thaler, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, Saturday Night Live, savings glut, security theater, short selling, Skype, statistical model, Steven Pinker, The Great Moderation, The Market for Lemons, the scientific method, The Signal and the Noise by Nate Silver, The Wisdom of Crowds, Thomas Bayes, Thomas Kuhn: the structure of scientific revolutions, too big to fail, transaction costs, transfer pricing, University of East Anglia, Watson beat the top human players on Jeopardy!, wikimedia commons

The Birth of the Chess Computer The Spanish engineer Leonardo Torres y Quevedo built a version of the Mechanical Turk in 1912, which he called El Ajedrecista (the chess player). Although El Ajedrecista is sometimes regarded as the first computer game,7 it was extremely limited in its functionality, restricted to determining positions in an endgame in which there are just three pieces left on the board. (El Ajedrecista also did not have any stereotypical Turkish headgear.) The father of the modern chess computer was MIT’s Claude Shannon, a mathematician regarded as the founder of information theory, who in 1950 published a paper called “Programming a Computer for Playing Chess.”8 Shannon identified some of the algorithms and techniques that form the backbone of chess programs today. He also recognized why chess is such an interesting problem for testing the powers of information-processing machines. Chess, Shannon realized, has an exceptionally clear and distinct goal—achieving checkmate.

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., 187 incentives, 184, 250, 313, 333, 356, 357, 501 Inconvenient Truth, An, 385 index funds, 344, 370 India, 210n Indiana Pacers, 236n, 489 indicators: lagging, 187–88 leading, 186–88, 196–97 Indonesia, 209 Industrial Revolution, 2, 5–6, 112, 212 infectious disease, 16, 204–31 SIR model of, 220–21, 221, 223, 225, 389 see also specific diseases inflation, 11, 186n, 191, 198, 202 information, 1, 451 analyzing, 232 asymmetrical, 35 collecting, 232 exclusive, 98, 99–101 explosion of, 3–4, 6, 7, 12, 13, 17, 45 forecasting and, 5 quality of, 2, 13, 17 information age, 7, 45, 358 information overload, 12 information processing, 449 information technology, 411 revolution in, 1–4 information theory, 265 InfoSpace, 353, 360 initial condition uncertainty, 390–92 insider trading, 341–42 intelligent extraterrestrial species, 488 interest rates, 186n, 190, 202 International Panel on Climate Change (IPCC), 382, 383–84, 393 1990 predictions of, 373–76, 389, 393, 397–99, 397, 399, 401, 507 “uncertainty” in, 389 Internet, 13, 223, 250, 514 poker on, 296–97, 310 quality of information on, 3 Intrade, 333, 334, 335, 336–37, 358, 367, 497 invisible hand, 332 Ioannidis, John P.

pages: 781 words: 226,928

**
Commodore: A Company on the Edge
** by
Brian Bagnall

Apple II, belly landing, Bill Gates: Altair 8800, Byte Shop, Claude Shannon: information theory, computer age, Douglas Engelbart, Douglas Engelbart, Firefox, game design, index card, inventory management, Isaac Newton, low skilled workers, Menlo Park, packet switching, pink-collar, popular electronics, prediction markets, pre–internet, QWERTY keyboard, Robert Metcalfe, Robert X Cringely, Silicon Valley, special economic zone, Steve Jobs, Steve Wozniak, Ted Nelson

One of Shannon’s cultists would soon spread the word to Peddle at the University of Maine. During Peddle’s senior year, the University of Maine accepted a lecturer from MIT who studied under Claude Shannon. According to Peddle, “He had a nervous breakdown, so he left MIT. The University of Maine was so happy to get him because he was so superior to the type of instructor they could normally get. They gave him the opportunity to teach only four classes per week between the hours of eleven o’clock and noon. The guy was being totally babied and should have been since he was a great instructor. He decided to put together a class to teach people about Information Theory.” At the time, Peddle was enrolling for his junior year. The new Information Theory class happened to fit into his schedule. As Peddle recalls, “It changed my life.” The class began with the instructor discussing the eyes and ears as the primary sensors for receiving information.

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In 1948, while working at Bell Labs, Shannon produced a groundbreaking paper, A Mathematical Theory of Communication. In it, he rigorously analyzed the concept of Information Theory and how pictures, words, sounds and other media are transmitted using a stream of ones and zeros. He even coined the word “bit.” Peddle was enchanted with his theories. “Today, you take this for granted, but you have to remember that someone had to dream all this up,” he says. “Everyone else’s work stands on his shoulders and most people don’t even know it.” Chuck Peddle, father of the 6502 (Das neue P.M. Computerheft). In 1956, Shannon returned to MIT at Lincoln Labs as a lecturer and Artificial Intelligence researcher. While there, he spread his concepts on Information Theory. “He changed the world,” says Peddle. “Shannon was not only a pioneer, but a prophet. He effectively developed a following, almost like a cult.”

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The class began with the instructor discussing the eyes and ears as the primary sensors for receiving information. “He started teaching us about Boolean algebra and binary logic, and the concept of Information Theory,” recalls Peddle. “I just fell in love. This was where I was going to spend my life.” However, the topic that interested Peddle the most was computers. “Information Theory was interesting, and I’ve used it from time to time, but the computer stuff this guy taught me was life changing.” Peddle immersed himself in computer theory. “I got an A on my senior paper in physics class by giving a discussion on binary and Boolean arithmetic. I was trying to build an AND gate in my senior class [using early transistors] and the top electrical engineers on campus couldn’t help me figure out the structures and why my AND gate didn’t work.”

pages: 1,799 words: 532,462

**
The Codebreakers: The Comprehensive History of Secret Communication From Ancient Times to the Internet
** by
David Kahn

anti-communist, British Empire, Claude Shannon: information theory, computer age, cuban missile crisis, Fellow of the Royal Society, Honoré de Balzac, index card, interchangeable parts, invention of the telegraph, Isaac Newton, Johannes Kepler, John von Neumann, Louis Daguerre, Maui Hawaii, Norbert Wiener, out of africa, pattern recognition, place-making, popular electronics, positional goods, Republic of Letters, Searching for Interstellar Communications, stochastic process, the scientific method, trade route, Turing machine, union organizing, yellow journalism, zero-sum game

Code Expert,” The New York Times (March 3, 1966), 35. 730 Britain: Great Britain, The British Imperial Calendar and Civil Service List, 1964 (London: H.M.’s Stationery Office, 1964), columns 322, 326; Who’s Who, 1964 for Sir Eric Jones, Sir Clive Lochnis, Leonard J. Hooper, Brig. John H. Tiltman. 731 “One of the primary,” “provide full protection”: CED 1301.10d, CED 3204.8a. Other goals at CED 1301.6, -.7, –.8. Chapter 20 THE ANATOMY OF CRYPTOLOGY I am grateful to Claude Shannon and to David Slepian for reading an early draft of the parts of this chapter on information theory and making helpful suggestions. 737 “It would not be”: A. Adrian Albert, “Some Mathematical Aspects of Cryptography,” unpublished paper delivered before the American Mathematical Association, November 22, 1941. 737 “The transformations are”: Maurits de Vries, “Concealment of Information,” Synthèse, IX (1953), 326-336 at 330. 739 stability of letter frequency: for an explanation of this—based on de Saussure’s axiom of the independence of sound and meaning—see G.

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Margoliouth, who had served in England’s M.I. 1(b) in World War I and should have known better, rearranged the colophons of the Iliad and the Odyssey and found two incantations to the muse which neither appear to make much sense nor add anything to the epics. Anti-Baconian Ib Melchior fell victim to his opponents’ obsession and enigmalyzed from Shakespeare’s tombstone a message in alleged Elizabethan English that supposedly meant, “Elsinore laid wedge first Hamlet edition”; his enigmaduction enjoys the dubious prestige of being the first to have been laid low by Claude Shannon’s unicity-point formula. Baconian Pierre Henrion has extended his enigmaplan to Jonathan Swift; by anagramming the nonsensical names in Gulliver’s Travels, substituting letters, and then anagramming again, he “proves” that LEMUEL GULLIVER really means Jonathan Swift and that LILLIPUT is Nowhere. A British artillery colonel, H. W. L. Hime, has “deciphered” a text proving that Roger Bacon invented gunpowder; unfortunately, while the most important letters of this text appear in printed versions through some errors, they do not exist in the original manuscript.

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Similarly, bisection of a message—cutting it in half and tacking the start onto the end—buries the frequently routine start of a message in the middle and brings the middle of a phrase to the head of the message. This substantially lowers the redundancy of that vulnerable point. Shannon’s information theory shows how to make cryptanalysis more difficult and tells how much ciphertext is needed to reach a valid solution. In all these ways it has contributed to a deeper understanding of cryptology. Shannon has also viewed cryptology from a couple of other perspectives, which, while not as useful as information theory, are enlightening. The first, in fact, is a kind of corollary to the information-theory view. “From the point of view of the cryptanalyst,” Shannon wrote, “a secrecy system is almost identical with a noisy communication system.” In information theory, the term “noise” has a special meaning. Noise is any unpredictable disturbance that creates transmission errors in any channel of communication.

pages: 761 words: 231,902

**
The Singularity Is Near: When Humans Transcend Biology
** by
Ray Kurzweil

additive manufacturing, AI winter, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, anthropic principle, Any sufficiently advanced technology is indistinguishable from magic, artificial general intelligence, Asilomar, augmented reality, autonomous vehicles, Benoit Mandelbrot, Bill Joy: nanobots, bioinformatics, brain emulation, Brewster Kahle, Brownian motion, business cycle, business intelligence, c2.com, call centre, carbon-based life, cellular automata, Claude Shannon: information theory, complexity theory, conceptual framework, Conway's Game of Life, coronavirus, cosmological constant, cosmological principle, cuban missile crisis, data acquisition, Dava Sobel, David Brooks, Dean Kamen, disintermediation, double helix, Douglas Hofstadter, en.wikipedia.org, epigenetics, factory automation, friendly AI, George Gilder, Gödel, Escher, Bach, informal economy, information retrieval, invention of the telephone, invention of the telescope, invention of writing, iterative process, Jaron Lanier, Jeff Bezos, job automation, job satisfaction, John von Neumann, Kevin Kelly, Law of Accelerating Returns, life extension, lifelogging, linked data, Loebner Prize, Louis Pasteur, mandelbrot fractal, Marshall McLuhan, Mikhail Gorbachev, Mitch Kapor, mouse model, Murray Gell-Mann, mutually assured destruction, natural language processing, Network effects, new economy, Norbert Wiener, oil shale / tar sands, optical character recognition, pattern recognition, phenotype, premature optimization, randomized controlled trial, Ray Kurzweil, remote working, reversible computing, Richard Feynman, Robert Metcalfe, Rodney Brooks, scientific worldview, Search for Extraterrestrial Intelligence, selection bias, semantic web, Silicon Valley, Singularitarianism, speech recognition, statistical model, stem cell, Stephen Hawking, Stewart Brand, strong AI, superintelligent machines, technological singularity, Ted Kaczynski, telepresence, The Coming Technological Singularity, Thomas Bayes, transaction costs, Turing machine, Turing test, Vernor Vinge, Y2K, Yogi Berra

See Theodore Modis, "Forecasting the Growth of Complexity and Change," Technological Forecasting and Social Change 69.4 (2002), http://ourworld.compuserve.com/homepages/tmodis/TedWEB.htm. 3. Compressing files is a key aspect of both data transmission (such as a music or text file over the Internet) and data storage. The smaller the file is, the less time it will take to transmit and the less space it will require. The mathematician Claude Shannon, often called the father of information theory, defined the basic theory of data compression in his paper "A Mathematical Theory of Communication," The Bell System Technical Journal 27 (July–October 1948): 379–423, 623–56. Data compression is possible because of factors such as redundancy (repetition) and probability of appearance of character combinations in data. For example, silence in an audio file could be replaced by a value that indicates the duration of the silence, and letter combinations in a text file could be replaced with coded identifiers in the compressed file.

**
Data Mining: Concepts and Techniques: Concepts and Techniques
** by
Jiawei Han,
Micheline Kamber,
Jian Pei

bioinformatics, business intelligence, business process, Claude Shannon: information theory, cloud computing, computer vision, correlation coefficient, cyber-physical system, database schema, discrete time, distributed generation, finite state, information retrieval, iterative process, knowledge worker, linked data, natural language processing, Netflix Prize, Occam's razor, pattern recognition, performance metric, phenotype, random walk, recommendation engine, RFID, semantic web, sentiment analysis, speech recognition, statistical model, stochastic process, supply-chain management, text mining, thinkpad, Thomas Bayes, web application

Let D, the data partition, be a training set of class-labeled tuples. Suppose the class label attribute has m distinct values defining m distinct classes, Ci (for ). Let be the set of tuples of class Ci in D. Let and denote the number of tuples in D and , respectively. Information Gain ID3 uses information gain as its attribute selection measure. This measure is based on pioneering work by Claude Shannon on information theory, which studied the value or “information content” of messages. Let node N represent or hold the tuples of partition D. The attribute with the highest information gain is chosen as the splitting attribute for node N. This attribute minimizes the information needed to classify the tuples in the resulting partitions and reflects the least randomness or “impurity” in these partitions.

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Perception-based classification (PBC), a visual and interactive approach to decision tree construction, is presented in Ankerst, Elsen, Ester, and Kriegel [AEEK99]. For a detailed discussion on attribute selection measures, see Kononenko and Hong [KH97]. Information gain was proposed by Quinlan [Qui86] and is based on pioneering work on information theory by Shannon and Weaver [SW49]. The gain ratio, proposed as an extension to information gain, is described as part of C4.5 (Quinlan [Qui93]). The Gini index was proposed for CART in Breiman, Friedman, Olshen, and Stone [BFOS84]. The G-statistic, based on information theory, is given in Sokal and Rohlf [SR81]. Comparisons of attribute selection measures include Buntine and Niblett [BN92], Fayyad and Irani [FI92], Kononenko [Kon95], Loh and Shih [LS97] and Shih [Shi99]. Fayyad and Irani [FI92] show limitations of impurity-based measures such as information gain and the Gini index.

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A good weighting function should obey the following properties: (1) the best semantic indicator of a pattern, p, is itself, (2) assign the same score to two patterns if they are equally strong, and (3) if two patterns are independent, neither can indicate the meaning of the other. The meaning of a pattern, p, can be inferred from either the appearance or absence of indicators. Mutual information is one of several possible weighting functions. It is widely used in information theory to measure the mutual independency of two random variables. Intuitively, it measures how much information a random variable tells about the other. Given two frequent patterns, pα and pβ, let X = {0, 1} and Y = {0, 1} be two random variables representing the appearance of pα and pβ, respectively. Mutual information I(X; Y) is computed as(7.18) where , , , and . Standard Laplace smoothing can be used to avoid zero probability.

**
Applied Cryptography: Protocols, Algorithms, and Source Code in C
** by
Bruce Schneier

active measures, cellular automata, Claude Shannon: information theory, complexity theory, dark matter, Donald Davies, Donald Knuth, dumpster diving, Exxon Valdez, fault tolerance, finite state, invisible hand, John von Neumann, knapsack problem, MITM: man-in-the-middle, NP-complete, P = NP, packet switching, RAND corporation, RFC: Request For Comment, software patent, telemarketer, traveling salesman, Turing machine, web of trust, Zimmermann PGP

Army and Navy organizations, working entirely in secret, began to make fundamental advances in cryptography. During the thirties and forties a few basic papers did appear in the open literature and several treatises on the subject were published, but the latter were farther and farther behind the state of the art. By the end of the war the transition was complete. With one notable exception, the public literature had died. That exception was Claude Shannon’s paper “The Communication Theory of Secrecy Systems,” which appeared in the Bell System Technical Journal in 1949 [1432]. It was similar to Friedman’s 1918 paper, in that it grew out of wartime work of Shannon’s. After the Second World War ended it was declassified, possibly by mistake. From 1949 until 1967 the cryptographic literature was barren. In that year a different sort of contribution appeared: David Kahn’s history, The Codebreakers [794].

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If a cryptosystem has ideal secrecy, even successful cryptanalysis will leave some uncertainty about whether the recovered plaintext is the real plaintext. Information Theory in Practice While these concepts have great theoretical value, actual cryptanalysis seldom proceeds along these lines. Unicity distance guarantees insecurity if it’s too small but does not guarantee security if it’s high. Few practical algorithms are absolutely impervious to analysis; all manner of characteristics might serve as entering wedges to crack some encrypted messages. However, similar information theory considerations are occasionally useful, for example, to determine a recommended key change interval for a particular algorithm. Cryptanalysts also employ a variety of statistical and information theory tests to help guide the analysis in the most promising directions. Unfortunately, most literature on applying information theory to cryptanalysis remains classified, including the seminal 1940 work of Alan Turing.

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Keyword Brief Full Advanced Search Search Tips (Publisher: John Wiley & Sons, Inc.) Author(s): Bruce Schneier ISBN: 0471128457 Publication Date: 01/01/96 Search this book: Go! Previous Table of Contents Next ----------- Part III Cryptographic Algorithms Chapter 11 Mathematical Background 11.1 Information Theory Modern information theory was first published in 1948 by Claude Elmwood Shannon [1431, 1432]. (His papers have been reprinted by the IEEE Press [1433].) For a good mathematical treatment of the topic, consult [593]. In this section, I will just sketch some important ideas. Entropy and Uncertainty Information theory defines the amount of information in a message as the minimum number of bits needed to encode all possible meanings of that message, assuming all messages are equally likely. For example, the day-of-the-week field in a database contains no more than 3 bits of information, because the information can be encoded with 3 bits: 000 001 010 011 100 101 = = = = = = Sunday Monday Tuesday Wednesday Thursday Friday 110 = Saturday 111 is unused If this information were represented by corresponding ASCII character strings, it would take up more memory space but would not contain any more information.