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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…

General Finance · Quantitative Finance 2021-02-03 Sergey Rashkovskiy

We revisit the concavity property of the thermodynamic entropy in order to formulate a general proof of the minimum energy principle as well as of other equivalent extremum principles that are valid for thermodynamic potentials and…

Statistical Mechanics · Physics 2011-10-25 S. Prestipino , P. V. Giaquinta

The author proposes a finance trading strategy named Entropy Oriented Trading and apply thermodynamics on the strategy. The state variables are chosen so that the strategy satisfies the second law of thermodynamics. Using the law, the…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Yoichi Hirai

From a new rigorous formulation of the general axiomatic foundations of thermodynamics we derive an operational definition of entropy that responds to the emergent need in many technological frameworks to understand and deploy thermodynamic…

Quantum Physics · Physics 2019-11-21 Gian Paolo Beretta , Enzo Zanchini

We generalize the second law of thermodynamics in its maximum work formulation for a nonequilibrium initial distribution. It is found that in an isothermal process, the Boltzmann relative entropy (H-function) is not just a Lyapunov function…

Statistical Mechanics · Physics 2015-05-13 H. -H. Hasegawa , J. Ishikawa , K. Takara , D. J. Driebe

In the real world, one almost never knows the parameters of a thermodynamic process to infinite precision. Reflecting this, here we investigate how to extend stochastic thermodynamics to systems with uncertain parameters, including…

Statistical Mechanics · Physics 2021-03-17 Jan Korbel , David H. Wolpert

We treat a quantum mechanical system with certain general properties which are expected to be common in macroscopic quantum systems. Starting from a PURE initial state (which may not describe an equilibrium) in which energy is mildly…

Statistical Mechanics · Physics 2007-05-23 Hal Tasaki

We propose a new form of the Second Law inequality that defines a tight bound for extractable work from the non-equilibrium quantum state. In classical thermodynamics, the optimal work is given by the difference of free energy, what…

Quantum Physics · Physics 2023-02-14 Marcin Łobejko

The paper present one of attempts to apply the thermodynamics laws to economics. Introducing common thermodynamic parameters and considering world economics as a one macrosystem, authors demonstrate the possible consequences of entropy…

Physics and Society · Physics 2008-07-03 A. M. Tishin , O. B. Baklitskaya

Using a game theory approach and a new extremal problem, Gibbs formula is proved in a most simple and general way for the classical mechanics case. A corresponding conjecture on the asymptotics of the classical entropy is formulated. For…

General Physics · Physics 2011-05-25 Lev Sakhnovich

The entropy shows an unavoidable tendency of disorder in thermostatistics according to the second thermodynamics law. This provides a minimization entropy principle for quantum thermostatistics with the von Neumann entropy and nonextensive…

Quantum Physics · Physics 2021-04-09 M. X. Luo , X. Wang

An axiomatic approach to macroeconomics based on the mathematical structure of thermodynamics is presented. It deduces relations between aggregate properties of an economy, concerning quantities and flows of goods and money, prices and the…

General Economics · Economics 2025-06-18 N. J. Chater , R. S. MacKay

Accurately describing work extraction from a quantum system is a central objective for the extension of thermodynamics to individual quantum systems. The concepts of work and heat are surprisingly subtle when generalizations are made to…

Quantum Physics · Physics 2015-03-30 Felix C. Binder , Sai Vinjanampathy , Kavan Modi , John Goold

We investigate the connection between recent results in quantum thermodynamics and fluctuation relations by adopting a fully quantum mechanical description of thermodynamics. By including a work system whose energy is allowed to fluctuate,…

Quantum Physics · Physics 2017-03-27 Álvaro M. Alhambra , Lluis Masanes , Jonathan Oppenheim , Christopher Perry

A pair of symmetric expressions for the second law of thermodynamics is put forward. The conservation and transfer of entropy is discussed and applied to problems like biology, culture and life itself. A new explanation is given to the…

Quantum Physics · Physics 2007-05-23 Wang Zhen

In a recent paper Andrei N. Soklakov explained the foundations of the Lagrangian formulation of classical particle mechanics by means of Kolmogorov complexity. In the present paper we use some of Soklakov ideas in order to derive the second…

Mathematical Physics · Physics 2007-05-23 Adonai S. Sant'Anna

The 2nd law of thermodynamics yields an irreversible increase in entropy until thermal equilibrium is achieved. This irreversible increase is often assumed to require large and complex systems to emerge from the reversible microscopic laws…

Statistical Mechanics · Physics 2023-11-21 Ralph V. Chamberlin

Entropy is the distinguishing and most important concept of our efforts to understand and regularize our observations of a very large class of natural phenomena, and yet, it is one of the most contentious concepts of physics. In this…

Quantum Physics · Physics 2007-05-23 Elias P. Gyftopoulos

If the second law of thermodynamics forbids a transition from one state to another, then it is still possible to make the transition happen by using a sufficient amount of work. But if we do not have access to this amount of work, can the…

Quantum Physics · Physics 2016-11-02 Álvaro M. Alhambra , Jonathan Oppenheim , Christopher Perry

For macroscopic systems, the second law of thermodynamics establishes an inequality between the amount of work performed on a system in contact with a thermal reservoir, and the change in its free energy. For microscopic systems, this…

Statistical Mechanics · Physics 2010-02-08 Eliran Boksenbojm , Bram Wynants , Christopher Jarzynski