2011/08/29 by J. R. Iglesias, Rita M. C. de Almeida, R. M. C. de Almeida · 1 citation
Economics, Econometrics and Finance · Mathematics · Physics and Astronomy · #Advanced Thermodynamics and Statistical Mechanics #Analogy #Complex Systems and Time Series Analysis #Econometrics #Economic theories and models #Economics #Econophysics #Entropy (arrow of time) #Equipartition theorem #Mathematical economics #Mathematics #Physical system #Physics #Quantum mechanics #Statistical physics #Thermodynamics #physics.soc-ph #q-fin.GN
paper · pdf · doi:10.1140/epjb/e2012-21036-1
arxiv created 2011/08/29 · openalex publication_date 2012/03/01 · arxiv updated 2015/05/29 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/05
Many recent models of trade dynamics use the simple idea of wealth exchanges among economic agents in order to obtain a stable or equilibrium distribution of wealth among the agents. In particular, a plain analogy compares the wealth in a society with the energy in a physical system, and the trade between agents to the energy exchange between molecules during collisions. In physical systems, the energy exchange among molecules leads to a state of equipartition of the energy and to an equilibrium situation where the entropy is a maximum. On the other hand, in the majority of exchange models, the system converges to a very unequal condensed state, where one or a few agents concentrate all the wealth of the society while the wide majority of agents shares zero or almost zero fraction of the wealth. So, in those economic systems a minimum entropy state is attained. We propose here an analytical model where we investigate the effects of a particular class of economic exchanges that minimize the entropy. By solving the model we discuss the conditions that can drive the system to a state of minimum entropy, as well as the mechanisms to recover a kind of equipartition of wealth.