SSRN Author: Jason SmithJason Smith SSRN Content
http://www.ssrn.com/author=2462930
http://www.ssrn.com/rss/en-usFri, 26 Jan 2018 03:06:11 GMTeditor@ssrn.com (Editor)Fri, 26 Jan 2018 03:06:11 GMTwebmaster@ssrn.com (WebMaster)SSRN RSS Generator 1.0REVISION: Maximum Entropy and Information Theory Approaches to EconomicsIn the natural sciences, complex non-linear systems composed of large numbers of smaller subunits provide an opportunity to apply the tools of statistical mechanics and information theory. The principle of maximum entropy can usually provide shortcuts in the treatment of these complex systems. However, there is an impasse to straightforward application to social and economic systems: the lack of well-defined constraints for Lagrange multipliers. This is typically treated in economics by introducing marginal utility as a Lagrange multiplier.
Jumping off from Gary Becker’s 1962 paper "Irrational Behavior and Economic Theory" — a maximum entropy argument in disguise — we introduce Peter Fielitz and Guenter Borchardt’s concept of "information equilibrium" presented in arXiv:0905.0610v4 [physics.gen-ph] as a means of applying maximum entropy methods even in cases where well-defined constraints such as energy conservation required to define Lagrange multipliers and partition functions are ...
http://www.ssrn.com/abstract=3094757
http://www.ssrn.com/1661227.htmlWed, 24 Jan 2018 09:14:52 GMTREVISION: Maximum Entropy and Information Theory Approaches to EconomicsIn the natural sciences, complex non-linear systems composed of large numbers of smaller subunits provide an opportunity to apply the tools of statistical mechanics and information theory. The principle of maximum entropy can usually provide shortcuts in the treatment of these complex systems. However, there is an impasse to straightforward application to social and economic systems: the lack of well-defined constraints for Lagrange multipliers. This is typically treated in economics by introducing marginal utility as a Lagrange multiplier.
Jumping off from Gary Becker’s 1962 paper "Irrational Behavior and Economic Theory" — a maximum entropy argument in disguise — we introduce Peter Fielitz and Guenter Borchardt’s concept of "information equilibrium" presented in arXiv:0905.0610v4 [physics.gen-ph] as a means of applying maximum entropy methods even in cases where well-defined constraints such as energy conservation required to define Lagrange multipliers and partition functions are ...
http://www.ssrn.com/abstract=3094757
http://www.ssrn.com/1656250.htmlThu, 04 Jan 2018 12:52:19 GMT