Financial heat machine

Andrei Khrennikov

Physica A: Statistical Mechanics and its Applications, 2005, vol. 350, issue 2, 487-490

Abstract: We consider dynamics of financial markets as dynamics of expectations and discuss such a dynamics from the point of view of phenomenological thermodynamics. We describe a financial Carnot cycle and the financial analog of a heat machine. We see, that while in physics a perpetuum mobile is absolutely impossible, in economics such mobile may exist under some conditions.

Keywords: Thermodynamics; Financial market; Carnot cycle; Perpetuum mobile; Maxwell's demon; Second law of thermodynamics (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:350:y:2005:i:2:p:487-490

DOI: 10.1016/j.physa.2004.11.046

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