What question did this study set out to answer?

To establish an operational interpretation for information transmission rate in a gambling framework without requiring coding schemes.

July 1, 1956Bell System Technical Journal

A New Interpretation of Information Rate

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To establish an operational interpretation for information transmission rate in a gambling framework without requiring coding schemes.
Modeled communication channel inputs as chance event outcomes with available betting odds.
Formulated mathematical strategies to maximize the long-term exponential growth rate of a gambler's capital using noisy received symbols.
Extended the theoretical formulation from fair betting odds to arbitrary odds scenarios.
Demonstrated that the maximum exponential growth rate of capital precisely equals the channel information transmission rate under fair odds.
Generalized the correspondence between transmission rate and capital growth to environments with arbitrary odds.
Proved transmission rate has intrinsic operational meaning independent of Shannon's coding theorem and error-correcting codes.

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Implication

Theoretical analysis demonstrates maximum exponential capital growth equals communication channel transmission rate under gambling odds, implying an operational meaning for capacity without coding.

Cite This Study

J. L. Kelly (1956) studied this question.

synapsesocial.com/papers/69d72fc3ef4aa71f97f306db https://doi.org/10.1002/j.1538-7305.1956.tb03809.x

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Implication

Theoretical analysis demonstrates maximum exponential capital growth equals communication channel transmission rate under gambling odds, implying an operational meaning for capacity without coding.

A New Interpretation of Information Rate

Key Points

Discussion

Implication

Cite This Study

A New Interpretation of Information Rate

Key Points

Discussion

Implication

Cite This Study