The evolution of lossy compression

In complex environments, there are costs to both ignorance and perception. An organism needs to track fitness-relevant information about its world, but the more information it tracks, the more resources it must devote to memory and processing. Rate-distortion theory shows that, when errors are allowed, remarkably efficient internal representations can be found by biologically-plausible hill-climbing mechanisms. We identify two regimes: a high-fidelity regime where perceptual costs scale logarithmically with environmental complexity, and a low-fidelity regime where perceptual costs are, remarkably, independent of the environment. When environmental complexity is rising, Darwinian evolution should drive organisms to the threshold between the high- and low-fidelity regimes. Organisms that code efficiently will find themselves able to make, just barely, the most subtle distinctions in their environment.