The author proposes a finance trading strategy named Entropy Oriented Trading and apply thermodynamics on the strategy. The state variables are chosen so that the strategy satisfies the second law of thermodynamics. Using the law, the author proves that the rate of investment (ROI) of the strategy is equal to or more t…
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48 results for “second law of thermodynamics”
Upper bound derived for informed traders' gains in a model, akin to thermodynamics.
problem Informed traders' gains in a financial model with finite horizon.
method Bayesian inference and entropic inequality.
result Upper bound for expected gain, analogous to thermodynamics.
Thermodynamics of marketsq-fin.GN
The thermodynamics of markets is analyzed, revealing parallels with thermodynamic laws.
problem Understanding economic systems through thermodynamic principles.
method Derivation and analysis of thermodynamic laws applied to economic systems.
result Deep analogy between thermodynamic and economic parameters established.
Eventological H-theoremq-fin.MF
Proves eventological H-theorem complementing Boltzmann's.
problem Mathematical justification for the second law of eventology.
method Proves eventological H-theorem using relative entropy.
result Mathematical support for Gibbs and anti-Gibbs distributions.
New framework reveals thermodynamic principles for LLM training.
problem Understanding the training dynamics of large language models.
method Introducing Neural Thermodynamic Laws (NTL) under river-valley loss landscape assumptions.
result Key thermodynamic quantities and principles naturally emerge in LLM training.
In this paper we study a class of physical systems that combine a finite number of mechanical and thermodynamic observables. We call them finite dimensional thermo-mechanical systems. We introduce these systems by means of simple examples. The evolution equations of the involved observables are obtained in each example…
Geometric approach to quantum thermodynamics models state spaces and processes.
problem Quantum thermodynamics in the regime of non-equilibrium states.
method Contact geometry and principal fiber bundles to model quantum state spaces and processes.
result Geometric formulation reveals the fundamental thermodynamic relations and unattainability of the third law.
Financial market dynamics compared to thermodynamics.
problem Understanding the dynamics of financial markets through thermodynamic principles.
method Analogy with Szilárd information engine to derive market temperature and information extraction.
result Informed traders' gains are bounded by market temperature and information.
On the role of geometry in statistical mechanics and thermodynamics I: Geometric perspectivecond-mat.stat-mech
The paper provides a geometric framework for understanding non-equilibrium thermodynamics.
problem Unclear geometric structure of GENERIC in non-equilibrium thermodynamics.
method Cotangent lifts of dynamics, splitting into holonomic and vertical representatives, and formulation within contact geometry.
result Physical meaning and explicit formulation of the second law of thermodynamics within evolution equations.
The paper applies thermodynamics to financial markets to prove no-arbitrage constraints.
problem No arbitrage in financial markets under price impact.
method Stochastic thermodynamics applied to financial trading cycles.
result Proves any round-trip trading strategy yields non-positive expected profit.
The paper explores how organisms and machines learn from their environment using machine learning, information theory, and thermodynamics.
problem How organisms and machines adapt to their environment.
method Machine learning, information theory, and thermodynamics approaches to understanding and modeling adaptation.
result Unified view of adaptation in organisms and machines based on principles of machine learning, information theory, and thermodynamics.
We analyze social and economic systems with a hierarchical structure and show that for such systems, it is possible to construct thermostatistics, based on the intermediate Gentile statistics. We show that in social and economic hierarchical systems there are elements that obey the Fermi-Dirac statistics and can be cal…
Every production-recycling iteration accumulates an inevitable proportion of its matter-energy in the environment, lest the production process itself would be a system in perpetual motion, violating the second law of Thermodynamics. Such high-entropy matter depletes finite stocks of ecosystem services provided by the e…
Unified theory for curved shell deformations with elastic and inelastic components.
problem Coupled nonlinear elastic and inelastic deformations of curved thin shells.
method Multiplicative decomposition of surface deformation gradient, detailed kinematics analysis, surface balance laws, constitutive relations derived from thermodynamics.
result Unified constitutive relations for growth, chemical swelling, thermoelasticity, viscoelasticity and elastoplasticity of shells.
Geometrically describes pseudo-gauge freedom in relativistic hydrodynamics.
problem Pseudo-gauge ambiguity in relativistic hydrodynamics.
method Develops -contact geometry to describe thermodynamic states and conservation laws.
result Identifies pseudo-gauge freedom as the non-uniqueness of thermodynamic equilibrium redefinition.
This study compares different thermodynamic structure-informed neural networks for solving differential equations.
problem Improving the accuracy and physical consistency of neural network solutions to differential equations.
method Comprehensive evaluation of various thermodynamic formulations in physics-informed neural networks.
result Newtonian-residual-based PINNs fail to reliably recover physical quantities, while structure-preserving formulations enhance accuracy and robustness.
The Thermodynamic Costs of Simple Linear Regressioncond-mat.stat-mech
Study on thermodynamic costs of simple linear regression.
problem Understanding thermodynamic costs in machine learning models.
method Approximated thermodynamic lower bounds for exact and stochastic linear regression.
result Derived scaling laws for optimal dataset size based on generalization error.
We formulate thermodynamics of economic systems in terms of an arbitrary probability distribution for a conserved economic quantity. As in statistical physics, thermodynamic macroeconomic variables emerge as the mean value of microeconomic variables and their determination is reduced to the computation of the partition…
The present paper analyses the formal parallelism existing between the laws of thermodynamics and some economic principles. Based on previous works, we shall show how the existence in Economics of principles analogous to those in thermodynamics involves the occurrence of economic events that remind of well-known phenom…
TANNs integrate thermodynamics into ANN models for accurate, consistent predictions.
problem Lack of rigorous physics-based approach in ANN constitutive modeling.
method TANNs encode thermodynamics principles in neural network architecture using automatic differentiation.
result TANNs produce thermodynamically consistent predictions without requiring large datasets.
Researchers create black holes isometric to extremal Reissner-Nordström.
problem Third law of black hole thermodynamics.
method Novel characteristic gluing procedure and scalar field pulses.
result Definitive disproof of the third law of black hole thermodynamics.
The principles of adaptation in organisms and machines II: Thermodynamics of the Bayesian brainq-bio.NC
The article explores how organisms and machines learn and recognize the world using Bayesian inference and thermodynamics.
problem Understanding how organisms and machines learn and recognize the world.
method Introducing a thermodynamic view of the Bayesian brain hypothesis, using a simple generative model of spiking neural populations.
result The process of Bayesian inference can be quantified using entropy, revealing the perceptual capacity of neural activity.
For common people, in contrast to brokers, bankers, and those who play on rising and falling prices of stocks, the stock market law is based on the simple fact that the depositors aim for financial profit at any given concrete stage. The common depositor cannot cause any significant variations in prices. This concept s…
We obtain asymptotic lower bounds for the spectral function of the Laplacian and for the remainder in local Weyl's law on manifolds. In the negatively curved case, thermodynamic formalism is applied to improve the estimates. Key ingredients of the proof include the wave equation parametrix, a pretrace formula and the D…
Inspired by constructions in complex geometry we introduce a thermodynamic framework for Monge-Ampère equations on real tori. We show convergence in law of the associated point processes and explain connections to complex Monge-Ampère equations and optimal transport.
Stochastic Geometric Mechanics in Nonequilibrium Thermodynamics: Schrödinger meets Onsagercond-mat.stat-mech
Schrödinger and Onsager's ideas linked in nonequilibrium thermodynamics.
problem Linking Schrödinger's variational problem with Onsager's nonequilibrium statistical mechanics.
method Analyzing the historical context and comparing the two approaches.
result Schrödinger's ideas have not yet been fully integrated into the classical context of Onsager's work.
Unified thermodynamic approach to Transformer attention dynamics.
problem Understanding the statistical mechanics of Transformer attention.
method Constructing a Lagrangian on the information manifold to analyze attention dynamics.
result Establishes a formal correspondence between scaled dot-product attention and canonical ensemble statistics.
This work develops a machine learning approach to EOS models that accounts for thermodynamic constraints and model uncertainty.
problem Developing accurate equation of state models for high energy-density experiments with inherent uncertainties.
method Physics-informed Gaussian process regression (GPR) framework to capture model uncertainty and thermodynamic constraints.
result The proposed framework reduces prediction uncertainty by incorporating thermodynamic constraints, as demonstrated for diamond carbon EOS.
We formulate the variational problem for AdS gravity with Dirichlet boundary conditions and demonstrate that the covariant counterterms are necessary to make the variational problem well-posed. The holographic charges associated with asymptotic symmetries are then rederived via Noether's theorem and `covariant phase sp…
We study the indefinite metric in the contact phase space of a homogeneous thermodynamical system introduced by R. Mrugala. We calculate the curvature tensor, Killing vector fields, second fundamental form of Legendre submanifolds of - constitutive surfaces of different homogeneous thermodynamical syste…
New analysis shows temperature guarantees generalization in stochastic training.
problem Analyzing the generalization gap in stochastic training algorithms.
method Analyzing Langevin dynamics with positive temperature and bounding the generalization gap.
result Bounding the generalization gap by √(βE[L(θ_0)] + log(1/δ))/√N with probability 1-δ.
The study describes society as a probabilistic system with entropy and diversity, finding new statistical approaches.
problem Understanding entropy and diversity in social systems.
method Modeling society as a probabilistic system, analyzing entropy and inequality, applying thermodynamic principles.
result New statistical approaches (Fermi-Dirac and Bose-Einstein) for employment and income distribution.
Universal model for soft tissue mechanics under shock waves.
problem Modeling shock wave mechanics in soft biological tissues.
method Continuum mixture theory with phase-field mechanics.
result Universal thermodynamically consistent formulation for soft porous tissues.
Boltzmann-Gibbs Distribution of Fortune and Broken Time-Reversible Symmetry in Econodynamicsphysics.soc-ph
Within the description of stochastic differential equations it is argued that the existence of Boltzmann-Gibbs type distribution in economy is independent of the time reversal symmetry in econodynamics. Both power law and exponential distributions can be accommodated by it. The demonstration is based on a mathematical …
Develops neural networks that follow thermodynamics principles.
problem Learning physical systems from data while respecting thermodynamics.
method Uses feedforward neural networks and the GENERIC formalism to enforce metriplectic structure.
result Predictions comply with first and second principles of thermodynamics.
Algorithm learns latent variables for thermodynamically-consistent deep neural networks.
problem Predicting time evolution of large-scale physical systems with thermodynamic consistency.
method Sparse autoencoders and structure-preserving neural networks.
result Method conserves total energy and entropy inequality for both conservative and dissipative systems.
On a Riemannian manifold, lower Ricci curvature bounds are known to be characterized by geodesic convexity properties of various entropies with respect to the Kantorovich-Rubinstein-Wasserstein square distance from optimal transportation. These notions also make sense in a (nonsmooth) metric measure setting, where they…
Statistical models of economic distributions lead to Boltzmann distributions rather than a Pareto power law. This result is supported by two facts: 1. the distributions of income, car sales, marriages or jobs are a matter of chances and luck and not of reason! 2. Data for property, automobile sales, marriages and job m…
The notion of utility maximising entropy (u-entropy) of a probability density, which was introduced and studied by Slomczynski and Zastawniak (Ann. Prob 32 (2004) 2261-2285, arXiv:math.PR/0410115 v1), is extended in two directions. First, the relative u-entropy of two probability measures in arbitrary probability space…
Power Laws are Boltzmann Laws in Disguisecond-mat.stat-mech
Using a model based on generalised Lotka Volterra dynamics together with some recent results for the solution of generalised Langevin equations, we show that the equilibrium solution for the probability distribution of wealth has two characteristic regimes. For large values of wealth it takes the form of a Pareto style…
The exponentially truncated q-distribution: A generalized distribution for real complex systemscond-mat.stat-mech
To know the statistical distribution of a variable is an important problem in management of resources. Distributions of the power law type are observed in many real systems. However power law distributions have an infinite variance and thus can not be used as a standard distribution. Normally professionals in the area …
The formal structure of geometrical thermodynamics is reviewed with particular emphasis on the geometry of equilibria submanifolds. On these submanifolds thermodynamic metrics are defined as the Hessian of thermodynamic potentials. Links between geometry and thermodynamics are explored for single and multiple component…
Financial market risk is modeled using thermodynamics, linking economic quantities to thermodynamic variables.
problem Model risk in financial markets caused by external information sources.
method Established a thermodynamic analogy between financial market variables and economic quantities, linking financial risk to entropy changes.
result Derivation of worst-case risk characterization rules using thermodynamics, leading to equilibrium and non-equilibrium thermodynamic evaluations.
Geometry and Conservation Laws for a Class of Second-Order Parabolic Equations II: Conservation Lawsmath.AP
Study finds conservation laws for a specific class of parabolic equations.
problem Existence and structure of conservation laws for evolutionary scalar second-order differential equations.
method Calculation of linearized characteristic cohomology to find conservation laws, showing dependence on second derivatives.
result Only Monge-Ampère type equations have non-trivial conservation laws.
The distribution of firms' growth and firms' sizes is a topic under intense scrutiny. In this paper we show that a thermodynamic model based on the Maximum Entropy Principle, with dynamical prior information, can be constructed that adequately describes the dynamics and distribution of firms' growth. Our theoretical fr…
Deep neural networks learn by averaging fast variables, revealing a Gaussian process.
problem Analyzing the complex behavior of deep neural networks (DNNs) with billions of parameters.
method Identifying slow variables that average the erratic behavior of fast microscopic variables in fully trained DNNs.
result DNN layers couple only through the second moment (kernels) of their activations and pre-activations, which fluctuate in a nearly Gaussian manner.
Paper variates Navier-Stokes-Fourier system for thermodynamic consistency.
problem Modeling compressible fluid dynamics with thermodynamic constraints.
method Variational discretization with discrete exterior calculus.
result Derives a nonholonomic variational integrator for NSF system.
Generalizes Newton's Second Law for field theory.
problem Applying Newton's Second Law to higher-dimensional parameterized submanifolds.
method Introducing geodesic k-vector field and deriving Hamilton's equations.
result Different forces can lead to the same Hamilton's equations.