A Review of Concentration, Diversity or Entropy Metrics in Economics, Finance, Ecology and Communication Science

Abstract

Many diversity, concentration and entropy metrics are analogous, sharing common origins in ecological science, engineering, mathematics, and communications theory. The difference in terminology depends upon the discipline in which the metrics are applied. The forthcoming article defines the concepts of concentration, diversity and entropy. The various indices used to measure these natural phenomena are examined and their origins identified. Selected examples of their application are reviewed. The aim is to provide a background to concentration metrics that have been applied in different fields of study, thus aiding the identification of topics where they might be used for future research.