Inversions of geophysical data often involve solving large-scale under
determined systems of equations that require regularization, preferabl
y through incorporation of a priori information. Since many natural ph
enomena exhibit complex random behavior, statistical properties offer
important a priori constraints. Inversion constrained by model covaria
nce functions, a form of stochastic regularization, is formally equiva
lent to imposing simultaneously the auxiliary constraints of (i) model
correlation (smoothness) and (ii) similarity with a preferred model (
damping). We show that a priori stochastic information defines uniquel
y the relative contributions of smoothing and damping, such that the h
igher the fractal dimension the greater the damping contribution. Howe
ver, if the model discretization interval exceeds the characteristic s
cale length of the parameters to be resolved, stochastic regularizatio
n artificially reduces to only damping constraints.