Numerical Evaluation of Algorithmic Complexity for Short Strings: A Glance into the Innermost Structure of Randomness

We describe an alternative method (to compression) that combines several theoretical and experimental results to numerically approximate the algorithmic (Kolmogorov-Chaitin) complexity of all $\sum_{n=1}^82^n$ bit strings up to 8 bits long, and for some between 9 and 16 bits long. This is done by an exhaustive execution of all deterministic 2-symbol Turing machines with up to 4 states for which the halting times are known thanks to the Busy Beaver problem, that is 11019960576 machines. An output frequency distribution is then computed, from which the algorithmic probability is calculated and the algorithmic complexity evaluated by way of the (Levin-Zvonkin-Chaitin) coding theorem.Comment: 29 pages, 5 figures. Version as accepted by the journal Applied Mathematics and Computatio

On the Algorithmic Nature of the World

We propose a test based on the theory of algorithmic complexity and an experimental evaluation of Levin's universal distribution to identify evidence in support of or in contravention of the claim that the world is algorithmic in nature. To this end we have undertaken a statistical comparison of the frequency distributions of data from physical sources on the one hand--repositories of information such as images, data stored in a hard drive, computer programs and DNA sequences--and the frequency distributions generated by purely algorithmic means on the other--by running abstract computing devices such as Turing machines, cellular automata and Post Tag systems. Statistical correlations were found and their significance measured.Comment: Book chapter in Gordana Dodig-Crnkovic and Mark Burgin (eds.) Information and Computation by World Scientific, 2010. (http://www.idt.mdh.se/ECAP-2005/INFOCOMPBOOK/). Paper website: http://www.mathrix.org/experimentalAIT

Image Characterization and Classification by Physical Complexity

We present a method for estimating the complexity of an image based on Bennett's concept of logical depth. Bennett identified logical depth as the appropriate measure of organized complexity, and hence as being better suited to the evaluation of the complexity of objects in the physical world. Its use results in a different, and in some sense a finer characterization than is obtained through the application of the concept of Kolmogorov complexity alone. We use this measure to classify images by their information content. The method provides a means for classifying and evaluating the complexity of objects by way of their visual representations. To the authors' knowledge, the method and application inspired by the concept of logical depth presented herein are being proposed and implemented for the first time.Comment: 30 pages, 21 figure

Estimating the Algorithmic Complexity of Stock Markets

Randomness and regularities in Finance are usually treated in probabilistic terms. In this paper, we develop a completely different approach in using a non-probabilistic framework based on the algorithmic information theory initially developed by Kolmogorov (1965). We present some elements of this theory and show why it is particularly relevant to Finance, and potentially to other sub-fields of Economics as well. We develop a generic method to estimate the Kolmogorov complexity of numeric series. This approach is based on an iterative "regularity erasing procedure" implemented to use lossless compression algorithms on financial data. Examples are provided with both simulated and real-world financial time series. The contributions of this article are twofold. The first one is methodological : we show that some structural regularities, invisible with classical statistical tests, can be detected by this algorithmic method. The second one consists in illustrations on the daily Dow-Jones Index suggesting that beyond several well-known regularities, hidden structure may in this index remain to be identified

A short note on number preference

Subjects usually show a preference for number 7 above any other in the bracket 0-9, at least in Europe and the USA. Two explanations (a cognitive one, and a cultural one) have been put forward as a bases for this "seven phenomenon". Here we advocate for a "reconciliation" between these two theories

Algorithmic Complexity of Financial Motions

We survey the main applications of algorithmic (Kolmogorov) complexity to the problem of price dynamics in financial markets. We stress the differences between these works and put forward a general algorithmic framework in order to highlight its potential for financial data analysis. This framework is “general" in the sense that it is not constructed on the common assumption that price variations are predominantly stochastic in nature.algorithmic information theory; Kolmogorov complexity; financial returns; market efficiency; compression algorithms; information theory; randomness; price movements; algorithmic probability

Automated Proofs in Geometry : Computing Upper Bounds for the Heilbronn Problem for Triangles

We propose a method for computing upper bounds for the Heilbronn problem for triangles