Modelling commerce in terms of chemical reactions

Dickens, Rob (2020): Modelling commerce in terms of chemical reactions. Published in: Theoretical and Practical Research in Economic Fields , Vol. XIII, No. 2(26) (31 December 2022): pp. 156-166.

Abstract

After first explaining the basis for such modelling, namely, changes in money in commerce appearing to mirror changes in 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 supply and demand, and using the somewhat literal example of a taxi journey up a hill, to help make sense of the approach. The modelling of supply and demand is then explained, the effect on prices being attributed to the spreading out of energy from sellers to buyers. An expression for this effect is then derived, in terms of the corresponding concentrating of money. Various implications of the model are then expounded, concerning the nature of money, price and its relationship to value, and intelligence, and some supporting evidence given. Two secondary implications, concerning economics and political science, are then discussed to conclude.

• Item Type: MPRA Paper
• Language: English
• Keywords: modelling; commerce; coupled chemical reactions; thermodynamics; free energy; theory of value; intelligence; political science
• 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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