Rationality, Property Rights, and Thermodynamic Approach to Market Equilibrium

Сергеев, Виктор Михайлович

doi:10.1007/s10958-006-0067-0

Cited by 4 publications

(3 citation statements)

References 15 publications

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“…But how this occurs is not stated. Sergeev (2001) seems to have set out to address this question when he proposed a more general concept of temperature according to which the equilibrium temperature (italics used to indicate an abstract notion as opposed to the physical quantity) of a system is simply the result of the condition that "there are no [net] flows of the conserved macro-parameters between the parts of the system." Thus he defines the notion of temperature as "the derivative of the entropy of the Large System with respect to the macro-parameter for which there exists a conservation law."…”

Section: Metaphors For Complex Systemsmentioning

confidence: 99%

“…Many systems in economics (Smith and Foley 2002;Sergeev 2001;Jaynes 1986), environmental sciences (Georgescu-Roegen 1971), molecular biology (Ptashne 1992), power engineering (Hauer et al 2001), sociology (Newman 2000), military command/control/communications/intelligence (C 3 I) (James and Mabry 2004), and transportation systems, exhibit this unanticipated emergent behavior and are thus candidates for membership in the class of systems characterized by complex adaptive behavior with the potential for unanticipated degradation (Watts and Strogatz 1998;Albert et al 2000) in robustness. However, exploiting the emergent behavior of complex systems (Feng et al 2000) by design has been the subject of discussion with respect to building controls (Huberman and Clearwater 1995)and using price as the only signal for electric power systems control (Alvarado 2003).…”

Section: Introductionmentioning

confidence: 99%

“…In economics, Smith and Foley (2002) show that the correspondence of utility theory to thermodynamics defines a whole consistent methodology, not just a set of analogies. Sergeev (2001) and Jaynes (1986) address the central role of entropy in a thermodynamics-inspired approach to market equilibrium and how it should be used. Jaynes (1991) further expands the analogy for time-varying phenomena using the formalism of predictive statistical mechanics.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Modeling Power Systems as Complex Adaptive Systems

Chassin¹,

Malard²,

Posse³

et al. 2004

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Physical analogs have shown considerable promise for understanding the behavior of complex adaptive systems, including macroeconomics, biological systems, social networks, and electric power markets. Many of today's most challenging technical and policy questions can be reduced to a distributed economic control problem. Indeed, economically based control of large-scale systems is founded on the conjecture that the price-based regulation (e.g., auctions, markets) results in an optimal allocation of resources and emergent optimal system control. This report explores the state-of-the-art physical analogs for understanding the behavior of some econophysical systems and deriving stable and robust control strategies for using them. We review and discuss applications of some analytic methods based on a thermodynamic metaphor, according to which the interplay between system entropy and conservation laws gives rise to intuitive and governing global properties of complex systems that cannot be otherwise understood. We apply these methods to the question of how power markets can be expected to behave under a variety of conditions.

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Section: Metaphors For Complex Systemsmentioning

confidence: 99%