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arXiv 2004-10-05 DOI 10.1214/009117904000000117 0 views

Utility maximizing entropy and the second law of thermodynamics

Slomczynski, Wojciech · Zastawniak, Tomasz

Original · EN

Expected utility maximization problems in mathematical finance lead to a generalization of the classical definition of entropy. It is demonstrated that a necessary and sufficient condition for the second law of thermodynamics to operate is that any one of the generalized entropies should tend to its minimum value of zero.

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