As I mention in my (newly revised) recent paper, we can use the ensemble approach to arrive at an almost identical information equilibrium condition for an ensemble of markets:
If ⟨k⟩ is slowly varying enough to treat as a constant ˉk, then we obtain the same solutions we have for a single market. But what if ⟨k⟩ has a small dependence on B
Where β≪1? The result is actually pretty straightforward (the differential equation is still exactly solvable [1])
...
Footnotes:
[1] The exact solution is
A(B)=A0exp(βBB0+ˉklogBB0)
but since β is small, we can expand the exponential and rewrite it in the more familiar form showing the β term as a perturbation.
Am I correct in thinking that term 'bracket A bracket' is a collection that includes term B?
ReplyDeleteOr are 'bracket A bracket' and B two items within a container, with the relationship described by the equation?
It is an ensemble average or expectation value with respect to a partition function (defined in the link to the paper in the post):
Deletehttps://en.wikipedia.org/wiki/Partition_function_(mathematics)#Expectation_values
It does depend on B since B is the Lagrange multiplier in the partition function.
Thanks for the reply; I'm glad I asked.
DeleteI wasn't even close in my suggested meanings!
Unfortunately, your math is several steps (and a lot of study time) above my current skill level. I like to follow your posts but usually find myself not understanding.
Thanks.
DeleteI try to write things at various technical levels -- partially because that's how things churn in my own brain. But also as a kid, I'd sometimes come across things I didn't understand and that helped motivate me to try new things. That's another reason why I put more technical stuff in -- not necessarily for everyone (and feel free to skip posts like these), but my younger self would have liked it.