Tuesday, September 27, 2011

Disorder and order again

OK, maximizing entropy is maximizing disorder. Disorder means unexpected events can happen. The house hold and firm like disorder in the market.

Here is how I remember. Order are traffic jams. Traffic jams on our streets organize the flow into quantum convoys. So, traffic flow is maximized by order (traffic jams) when the work day is done (a release from the order inside the firm).

Equilibrium is when all partitions agree on the amount of public order we tolerate, we agree on a finite number, the number of people in the queue. That is the key mechanism of change in the economy, the agent is queue manager. The secondary effect is maximum flow quantum numbers for all goods flow.

This is really basic biology, all about an uncertainty agreement, he Gibbs separation, becomes built into an optimum flow economy. It allows each party to independently set inventory levels and equalize inventory risk, among the partition. in a flow situation.

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