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Related papers: The Maxwell Demon and Market Efficiency

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Entropy is a very useful concept from physics that tries to explain how a system behaves from a point of view of the thermodynamics. However, there are two ways to explain entropy, and it depends on if we are studying a microsystem or a…

General Finance · Quantitative Finance 2024-07-02 Martin Pomares Calero

In the present paper, several issues concerning the second law of thermodynamics, Maxwell's demon and Landauer's principle are dealt with. I argue that if the demon and the system on which it operates without dissipation of external energy…

Classical Physics · Physics 2013-06-04 Germano D'Abramo

We propose and analyze a possible implementation of Maxwell's demon based on a single-electron pump. We show that measurements of the charge states of the pump and feedback control of the gate voltages lead to a net flow of electrons…

Mesoscale and Nanoscale Physics · Physics 2011-08-30 Dmitri V. Averin , Mikko Möttönen , Jukka P. Pekola

We present an autonomous Maxwell's demon scheme. It is first analysed theoretically in term of information exchange in a closed system and then implemented experimentally with a single Rydberg atom and a high-quality microwave resonator.…

According to the Maxwell demon paradigm, additional work can be extracted from a classical or quantum system by exploiting information obtained through measurements on a correlated ancillary system. In the quantum setting, the maximum work…

Quantum Physics · Physics 2025-12-03 K. H. Kua , Alessio Serafini , Marco G. Genoni

We utilize long-term memory, fractal dimension and approximate entropy as input variables for the Efficiency Index [Kristoufek & Vosvrda (2013), Physica A 392]. This way, we are able to comment on stock market efficiency after controlling…

Statistical Finance · Quantitative Finance 2015-06-16 Ladislav Kristoufek , Miloslav Vosvrda

It is generally accepted, following Landauer and Bennett, that the process of measurement involves no minimum entropy cost, but the erasure of information in resetting the memory register of a computer to zero requires dissipating heat into…

Quantum Physics · Physics 2007-05-23 J. Bub

The concept of Maxwell demon plays an essential role in connecting thermodynamics and information theory, while entanglement and non-locality are fundamental features of quantum theory. Given the rapid advancements in the field of quantum…

We argue that an important contributing factor into market inefficiency is the lack of a robust mechanism for the stock price to rise if a company has good earnings, e.g., via buybacks/dividends. Instead, the stock price is prone to…

Portfolio Management · Quantitative Finance 2015-11-05 Zura Kakushadze

We consider a system model of a general finite-state machine (ratchet) that simultaneously interacts with three kinds of reservoirs: a heat reservoir, a work reservoir, and an information reservoir, the latter being taken to be a running…

Statistical Mechanics · Physics 2017-03-08 Neri Merhav

In this paper two connected Szilard single molecule engines (with different temperature) model of Maxwell's demon are used to demonstrate and analysis the logical compare operation. The logical and physical complexity of compare operations…

Data Analysis, Statistics and Probability · Physics 2014-08-06 Feng Pan , Heng-Liang Zhang , Jie Qi

We have simulated numerically an automated version of Maxwell's demon inspired by Smoluchowski's ideas of 1912. Two gas chambers of equal volume are connected via an opening that is covered by a trapdoor. The trapdoor can open to the left…

Statistical Mechanics · Physics 2007-05-23 P. A. Skordos , W. H. Zurek

The question how complex systems become more organized and efficient with time is open. Examples are, the formation of elementary particles from pure energy, the formation of atoms from particles, the formation of stars and galaxies, the…

Physics and Society · Physics 2017-01-17 Georgi Georgiev , Atanu Chatterjee , Germano Iannacchione

The performance of equilibrium sensors is restricted by the laws of equilibrium thermodynamics. We here investigate the physical limits on nonequilibrium sensing in bipartite systems with nonreciprocal coupling. We show that one of the…

Statistical Mechanics · Physics 2024-07-26 Andreas Dechant , Eric Lutz

A key tenet of the Transactional Interpretation of Quantum Mechanics is the idea that photon absorption localizes the absorbing material system. In doing so, it measures the location of the absorber and hence reduces information entropy,…

Quantum Physics · Physics 2024-12-31 Andreas Schlatter , R. E. Kastner

The probabilistic information flow and natural computational capability of a system with two magnetic skyrmions at room temperature have been experimentally evaluated. Based on this evaluation, an all-solid-state built-in Maxwell's demon…

Mesoscale and Nanoscale Physics · Physics 2025-06-17 Yoshishige Suzuki , Hiroki Mori , Soma Miki , Kota Emoto , Ryo Ishikawa , Eiiti Tamura , Hikaru Nomura , Minori Goto

The first direct experimental replication of the Maxwell Demon thought experiment is outlined. The experiment determines the velocity/kinetic energy distribution of the particles in a sample by a novel interpretation of the results from a…

Statistical Mechanics · Physics 2019-06-04 Howard J. M. Hanley , Debra J. Searles

Recently Sagawa and Ueda [Phys. Rev. Lett. 100, 080403 (2008)] derived a bound on the work that can be extracted from a quantum system with the use of feedback control. They left open the question of whether this bound could be achieved for…

Quantum Physics · Physics 2009-08-05 Kurt Jacobs

We apply the maximum entropy principle to economic systems in equilibrium and find the density function for the market's wealth. This is the same as price density which is used for insurance pricing. The risk aversion parameter of the agent…

Statistical Mechanics · Physics 2008-12-10 Amir H. Darooneh

The efficient market hypothesis (EMH) famously stated that prices fully reflect the information available to traders. This critically depends on the transfer of information into prices through trading strategies. Traders optimise their…

Mathematical Finance · Quantitative Finance 2025-01-14 Paolo Barucca , Flaviano Morone