Re: Duncans work on statistical mechanics and economics

From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Fri Jun 25 2004 - 06:54:01 EDT


Quoting Paul C <clyder@GN.APC.ORG>:

> Philip Dunn wrote:
> 
> >Quoting clyder@GN.APC.ORG:
> >
> >
> >
> >>Has anyone else here read Duncan Foley's work on statistical
> >>mechanics and neo-classical economics?
> >>
> >>----------------------------------------------------------------
> >>This message was sent using IMP, the Internet Messaging Program.
> >>
> >>
> >>
> >
> >Hi Paul
> >
> >Not the statistical mechanics, only:
> >
> >Classical thermodynamics and economic general equilibrium theory (with Eric
> >Smith)
> >
> >
> >Philip Dunn
> >
> >
> >
> >
> I realise that I was wrong to say statistical mechanics. It is very
> much classical thermodynamics whereas my familiarity is more
> with the statistical mechanics or Shannon concepts of entropy.
> 
> I thus find Duncans identification of entropy with utility of a single
> agent very
> strange since to me the idea of entropy has to be based on
> summing over large ensembles.
> 

My first thought would also have been 'agent=atom in a gas' but DF takes each
agent as a thermodynamic system.  I don't think statistical mechanics is behind
this. I was impressed by the way that the GE initial endowments and trading to
equilibrium were dropped in favour of reversible near-equilibrium trading
(keeping the refrigator stocked). Rather like Marxian reproduction, in fact.  

Philip Dunn


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