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.
This working paper was published as Hennessy, David A., "Informed control over inputs and extent of industrial processing," Economics Letters 94 (2007): 372–377, doi:10.1016/j.econlet.2006.08.022.
Hennessy, David A., "Informed Control Over Inputs and Extent of Industrial Processing" (2005). CARD Working Papers. 421.