“Put enough people together and the laws of human interaction will produce predictable patterns—just as the interactions and motion of molecules determine the temperature and pressure of a gas. Describing people as though they were molecules is just what many physicists are doing today—in effect, they’re taking the temperature of society.”
“One of the best ways to take that temperature, it turns out, is to view society in terms of networks. In much the same way that ‘temperature’ captures an essential property of a jumble of gas molecules, network math quantifies how ‘connected’ the members of a social group are.”
“People do not all behave alike. Some players prefer to cooperate while others choose to defect, and some show a stronger desire than others to inflict punishment. A [theory] of nature must accommodate a mixture of individually different behavioral tendencies. The human race plays a mixed strategy in the game of life. People are not molecules, all alike and behaving differently only because of random interactions.”
“In a chemical reaction, all the atoms involved are seeking a stable arrangement, possessing a minimum amount of energy. It’s because of the laws of thermodynamics. And just as in a chemical reaction all the atoms are simultaneously seeking a state with a minimum energy, in an economy all the people are seeking to maximize their utility. A chemical reaction reaches an equilibrium enforced by the laws of thermodynamics; an economy should reach a Nash equilibrium dictated by game theory.”
“As one reviewer pointed out, it is not necessarily true that all economic systems converge to equilibrium, and that in some cases a chaotic physical system might be a better analogy than a chemical equilibrium system.”
“Real life isn’t quite that simple, of course. There are usually complicating factors. A bulldozer can push the rock back up the hill; you can add chemicals to spark a new chemistry in a batch of molecules. When people are involved, all sorts of new sources of unpredictability complicate the game theory playing field. Imagine how much trickier chemistry would be if molecules could think.”
Utility maximization = Free energy minimization
“What about chemistry and physics? At first glance there doesn’t seem to be any struggle for survival among molecules [see also: Robert Pirsig, 1991] engaged in chemical reactions. But in a way there is, and the connections between game theory and statistical mechanics promise to reveal ways in which game theory still applies. Reacting molecules, for instance, always seek a stable condition, in which their energy is at a minimum. The ‘desire’ for minimum energy in molecules is not so different from the ‘desire’ for maximum fitness in organisms.”
“The second law only describes the characteristics of the final state attained by an isolated system that undergoes a process. The law states that the entropy increases during the process and reaches the maximum value possible given the existing constraints. The law DOES NOT state that the system "has a tendency", "seeks to", "desires to", or "wants to" achieve such a state. However, in educational talk it is common to express the law as if there was intentionality in how the system changes.”
“Could not mind, as well as mindless motion, have an underlying order.”— Isaac Asimov (1988), “Emperor Cleon to Hari Seldon”, Prelude to Foundation