Entropy Demystified: Potential Order, Life and Money

Entropy Demystified: Potential Order, Life and Money

Author	Valery Chalidze
Published	2000
Publisher	Universal Publishers
Pages	193
ISBN	1581127685

Although the concept of entropy has been under discussion for one and a half centuries, its philosophical depth has still not been properly explored and it is still one of the most complicated and controversial concepts of science. Its application to the study of social processes has started only in recent decades. The author provides those who are interested in social studies, but not familiar with physics, with a comprehensible explanation of the concept of entropy. He introduces the concept of potential order, which characterizes the ability of an open system to become orderly or to create order in another system. In chapters on economics the author shows that the low-entropic component of an economy should not be treated in theory the same way as the purely energetic component. On the basis of this, the author shows the limitations for the use of variational calculus in economics and discuses the maximization of utility function.

In his analysis of the monetary measurement of potential order, the author shows that some important problems in economy come from the fact that the same measuring device -- money -- is used for both -- the purely energetic and low-entropic components of the economy.

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