Information Entrophy, Economic Analysis And Financial Reporting

Abstract

This paper presents a version of entropy theory in economic analysis. This theory is then used to introduce the notion of the social production of value and to critique the idea of transaction. Habermas’ theory of communicative action is then employed to understand the production of informational value, a necessary pre-condition to its dissipation. Finally, some suggestions as to how these concepts might be used to influence standards of financial reporting are entertained.