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Informed Control Over Inputs and Extent of Industrial Processing

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  • Hennessy, David A.

Abstract

Stylized facts regarding the industrial process include emphases on obtaining information about and control over the quality of raw materials. We provide a model that establishes conditions under which informed control involves ensuring uniformity in inputs and increased uniformity encourages more extensive processing. We show when the Boltzmann-Shannon entropy statistic is an appropriate measure of uniformity.

Suggested Citation

  • Hennessy, David A., 2005. "Informed Control Over Inputs and Extent of Industrial Processing," Hebrew University of Jerusalem Archive 18580, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18580
    DOI: 10.22004/ag.econ.18580
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