What is Fair Pay for Executives? An Information Theoretic Analysis of Wage Distributions
The high pay packages of U.S. CEOs have raised serious concerns about what would constitute a fair pay.
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arXiv subjects
Venkat Venkatasubramanian
Publications and source records attributed to Venkat Venkatasubramanian.
Entropy Maximization as a Holistic Design Principle for Complex Optimal Networks and the Emergence of Power Laws
We present a general holistic theory for the organization of complex networks, both human-engineered and naturally-evolved. Introducing concepts of value of interactions and satisfaction as generic network performance measures, we show that the underlying organizing principle is to meet an overall performance target for wide-ranging operating or environmental conditions. This design or survival requirement of reliable performance under uncertainty leads, via the maximum entropy principle, to the emergence of a power law vertex degree distribution. The theory also predicts exponential or Poisson degree distributions depending on network redundancy, thus explaining all three regimes as different manifestations of a common underlying phenomenon within a unified theoretical framework.
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Spontaneous Emergence of Complex Optimal Networks through Evolutionary Adaptation
An important feature of many complex systems, both natural and artificial, is the structure and organization of their interaction networks with interesting properties. Here we present a theory of self-organization by evolutionary adaptation in which we show how the structure and organization of a network is related to the survival, or in general the performance, objectives of the system. We propose that a complex system optimizes its network structure in order to maximize its overall survival fitness which is composed of short-term and long-term survival components. These in turn depend on three critical measures of the network, namely, efficiency, robustness and cost, and the environmental selection pressure. Using a graph theoretical case study, we show that when efficiency is paramount the "Star" topology emerges and when robustness is important the "Circle" topology is found. When efficiency and robustness requirements are both important to varying degrees, other classes of networks such as the "Hub" emerge. Our assumptions and results are consistent with observations across a wide variety of applications.
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