Physical Modeling of economic systems
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It is our main goal to learn to describe these trajectories or connected with them distributions of price probability. It is impossible to do this in a physical space, for example: we can thoroughly describe movement or trajectory of a seller with commodities in physical space, especially if he is in a car or in a spaceship, but it will not have any connection with his attitude to the given commodities and his behavior in this respect (showing his attitude to the commodities by means of his monetary estimation) as an economic agent. Within the problem of describing agents in the market, the role of price as an independent variable, or a coordinate p is considered here as a unique one for market economic systems.
Fig. 3.1. Coordinate system of the one-dimensional price space.
Fig. 3.2. Coordinate system of the two-dimensional price space.
The next step in developing a physical model after selecting a space is selection of a function with the help of which we will try to describe the dynamics of an economy, i.e. movement of buyers and sellers in the price space. Trajectories in coordinate physical space х(t) (classical mechanics), wave functions
4. Classical economy
According to the above-stated plan of actions in this chapter we could confine ourselves to just writing equations of motion analogous to those obtained in classical mechanics. However, we consider it useful to derive a full row of equations and to make additional comments on our actions. First of all, as we have indicated before, we suppose that according to our approach to classical modeling of economic systems every economic agent, homo negotians
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