Modelling commerce in terms of chemical reactions

Dickens, Rob (2020): Modelling commerce in terms of chemical reactions.

Abstract

After first explaining the basis for such modelling, namely, money in commerce appearing to mirror free energy in coupled chemical reactions, with a striking correspondence between profit and reduction in free energy, a model of two `coupled Deliveries' is constructed, noting the need also to model the market, and the somewhat literal example of a taxi journey up a hill is used to help make sense of the approach. The modelling of the market is then explained, where changes in the concentration of money over buyers and sellers is assumed to behave like changes in the degree to which energy is spread out over the microstates of a system. An expression for the profit due to the market is then derived, and a possible method for verifying this proposed. Further evidence that supports the model is then presented, followed by a discussion of the implications of the model's being found to be valid.

• Item Type: MPRA Paper
• Language: English
• Keywords: modelling; commerce; coupled chemical reactions; thermodynamics; free energy; theory of value; intelligence; politics
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B59 - Other; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D46 - Value Theory

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