Econophysics and Landauer Principle. Redefining of the Economic Temperature via the Landauer Principle

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Abstract

Redefining of the notions of econophysics based on the Landauer principle is suggested. Economic temperature is defined via the economic Landauer principle. The economic temperature is proportional to the minimal monetary cost associated with erasing or transmitting one bit of information in a given economic system. The introduced definition is useful for high-frequency trading. Clausius formulation of the Second Law of Thermodynamics for economic systems is formulated as follows: energy/money cannot spontaneously flow from a colder economic system to a hotter economic system. Carnot and Szilard’s economical engines are addressed. The Carathéodory formulation of the Second Law of Thermodynamics is re-shaped as follows: in every neighborhood of any equilibrium economic state, there exist states that cannot be reached by the process, which does not spend money or information. Optimal-power Curzon–Ahlborn economic engine is discussed.

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