Optimal provisioning theory and regulatory distortions

Firms must often invest in large-scale capacity expansions in order to service their expectation of future demand. This is known as provisioning. This paper introduces and examines issues and contributions in optimal provisioning theory. It discusses some regulatory distortions and suggests how an awareness of optimal provisioning can improve regulatory outcomes.

Quantified Interference: Information Theory and Information Flow

The paper investigates which of Shannon’s measures (entropy, conditional entropy, mutual information) is the right one for the task of quantifying information flow in a programming language. We examine earlier relevant contributions from Denning, McLean and Gray and we propose and motivate a specific quantitative definition of information flow. We prove results relating equivalence relations, interference of program variables, independence of random variables and the flow of confidential information. Finally, we show how, in our setting, Shannon’s Perfect Secrecy theorem provides a sufficient condition to determine whether a program leaks confidential information.