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Thermodynamics of markets

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  • Rashkovskiy, S.A.

Abstract

We consider the thermodynamic approach to the description of economic systems and processes. The first and second laws of thermodynamics as applied to economic systems are derived and analyzed. It is shown that there is a deep analogy between the parameters of thermodynamic and economic systems (markets); in particular, each thermodynamic parameter can be associated with a certain economic parameter or indicator. The economic meaning of such primordial thermodynamic concepts as pressure, volume, internal energy, heat, etc. has been established. The thermostatistics of the market is considered. It is shown that, as in conventional thermostatistics, many market parameters, such as price of goods, quantity of goods, etc., as well as their fluctuations can be calculated formally using the partition function of an economic system.

Suggested Citation

  • Rashkovskiy, S.A., 2021. "Thermodynamics of markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 567(C).
    • Handle: RePEc:eee:phsmap:v:567:y:2021:i:c:s0378437120309973
    DOI: 10.1016/j.physa.2020.125699
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    Cited by:

    1. Gündüz, Güngör & Kuzucuoğlu, Mahmut & Gündüz, Yalın, 2022. "Entropic characterization of Gross Domestic Product per capita (GDP) values of countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 603(C).
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    3. Aktaev, Nurken E. & Bannova, K.A., 2022. "Mathematical modeling of probability distribution of money by means of potential formation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 595(C).

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