2003/06/24 by David P. Chassin, Chassin, David P.
Computer Science · Decision Sciences · Economics, Econometrics and Finance · Physics and Astronomy · #Adaptation and Self-Organizing Systems (nlin.AO) #Complex Systems and Time Series Analysis #FOS: Physical sciences #Game Theory and Applications #Nonlinear Dynamics and Pattern Formation #nlin.AO
paper · pdf · doi:10.48550/arxiv.nlin/0306046
Accepted paper for Complex Systems track of 37th Hawaii International Conference on System Sciences, January 2004. 10 pages, 2 figures, 1 table
openalex publication_date 2003/06/24 · arxiv created 2003/09/30 · arxiv updated 2009/11/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
Statistical mechanics provides a useful analog for understanding the behavior of complex adaptive systems, including electric power markets and the power systems they intend to govern. Market-based control is founded on the conjecture that the regulation of complex systems based on price-mediated strategies (e.g., auctions, markets) results in an optimal allocation of resources and emergent optimal system control. This paper discusses the derivation and some illustrative applications of a first-principles model of market-based system dynamics based on strict analogies to statistical mechanics.