Socio-economic utility and chemical potential
AbstractIn statistical physics, the conservation of particle number results in the equalization of the chemical potential throughout a system at equilibrium. In contrast, the homogeneity of utility in socio-economic models is usually thought to rely on the competition between individuals, leading to Nash equilibrium. We show that both views can be reconciled by introducing a notion of chemical potential in a wide class of socio-economic models, and by relating it in a direct way to the equilibrium value of the utility. This approach also allows the dependence of utility across the system to be determined when agents take decisions in a probabilistic way. Numerical simulations of a urban economic model also suggest that our result is valid beyond the initially considered class of solvable models.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1010.3225.
Date of creation: Oct 2010
Date of revision: Feb 2011
Publication status: Published in EPL 93, 38002 (2011)
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Web page: http://arxiv.org/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-23 (All new papers)
- NEP-CMP-2010-10-23 (Computational Economics)
- NEP-UPT-2010-10-23 (Utility Models & Prospect Theory)
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- Vincent Boitier, 2014. "Unemployment Dispersion and City Configurations: Beyond the Bid Rent Theory," Working Papers hal-00999559, HAL.
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