ssrn-id1304630

ssrn-id1304630 - EXCELL GROUP INNOVATIVE CONSULTING COMPANY...

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Electronic copy available at: http://ssrn.com/abstract=1304630 EXCELL GROUP INNOVATIVE CONSULTING COMPANY Anatoly KONDRATENKO PHYSICAL MODELING OF ECONOMIC SYSTEMS CLASSICAL AND QUANTUM ECONOMIES NOVOSIBIRSK “NAUKA” 2005
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Electronic copy available at: http://ssrn.com/abstract=1304630 In the market economy major active players (or agents, or sub- jects), i.e. buyers and sellers of goods and commodities, behave to a cer- tain extent in a deterministic way thus subordinating their behavior in the market to some strict economic laws. The fact that these laws are of a descriptive nature, and they have not yet been expressed in a precise mathematic language, is not of key importance in this case. Every rational player or market subject acts in the market in accor- dance with a strict rule of obtaining maximum profit or benefit or some other criterion of optimality for him or her and in this respect market economic systems resemble physical systems where all players, mem- bers, and elements of the system act also in accordance with some prin- ciples of maximization. The main drive of our research is that we assume general possibility to develop dynamic models for relatively simple market economic sys- tems consisting of an economic subsystem or simply an economy with a certain number of buyers and sellers and its external environment with certain interactions between economy agents, and between the economy and environment. In this case, it is supposed that it can be performed by the analogy with the method of developing theoretical models of physi- cal systems consisting of a system of interacting material particles in the external fields or external environment [1, 2]. Moreover, it is assumed that equations of motion derived for physical systems in the physical space are quite a good initial approximation for equations of motion of modeled economic systems in some price space. Let’s give the following reasons to substantiate such an approach. Let p ( t ) be a trajectory of movement of the market subject in a price space, in other words, it is price p of a commodity set for by the subject at a moment t . By setting prices this way, buyers and sellers who act as homo negotians (a negotiating man) in a physical modeling aim at maxi- mum satisfaction of their strive for profit, i.e. for such price at which in- terests of both buyers and sellers and, considering external environment and the whole system in general, are satisfied in an optimal way. It is here that one can see similarity of the movement of economy (described 1. Introduction
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by trajectories p ( t )) to the moving of material particles of the physical system (described by trajectories x ( t )), which is also subject to a certain principle of maximization. This is what our confidence in conceptual possibility of developing a dynamic theory of economic systems in a pri- ce space by the analogy with a dynamic theory of physical systems in physical space is based on. We also admit that in spite of the difference
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ssrn-id1304630 - EXCELL GROUP INNOVATIVE CONSULTING COMPANY...

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