Entropy for a class of micro-economic models

Q: What type of study is this?

This is a Quantitative Study study.

Robert S. MacKay

doi:10.48550/arxiv.2510.01737

October 2, 2025Open Access

Entropy for a class of micro-economic models

View Full Paper

Ask AI

Bookmark

Share

Key Points

Entropy is crucial for understanding the state changes in agent-based economic models, indicating their stability.
The study proves a large class of models satisfies thermodynamic axioms, confirming their theoretical foundation.
Entropy is mathematically expressed as the logarithm of the partition function for stationary distributions.
The findings highlight the interplay between entropy concepts and micro-economic theory, suggesting broader applications.

Ask about this paper

Answers are grounded in this paper and cite their sources.

Implication

This research shows entropy relates to exchange economies and indicates thermodynamic principles apply.

Abstract

Chater and MacKay [CM] derived an entropy function of state for exchange economies satisfying a list of axioms, and showed that a change of state of a system of such economies is possible if and only if their total entropy does not decrease. In this paper, a large class of agent-based models is proved to satisfy the axioms in the thermodynamic limit, and the entropy is shown to be the logarithm of the partition function for their stationary distributions.

Discussion

No takes yet. Share an insight, caveat, or question.

Cite This Study

Robert S. MacKay (2025) studied this question.

synapsesocial.com/papers/68e25385d6d66a53c2474dcd https://doi.org/10.48550/arxiv.2510.01737

View Full Paper

Ask AI

Bookmark

Share

Entropy for a class of micro-economic models

Key Points

Ask about this paper

Implication

Abstract

Discussion

Cite This Study

Entropy for a class of micro-economic models

Key Points

Ask about this paper

Implication

Abstract

Discussion

Cite This Study

Keep reading

Keep reading