On the Theory of Human Decisions in the Age of "beneficial globalization"

The globalisation is a complex phenomenon with many advantageous and disadvantageous consequences. In this paper we investigate the linkage between globalised market economy and the happiness through the ethical implications of the greatest happiness principle in a system approach. We also investigate the terms of the beneficial globalisation. Our proposition is that: the main condition of the good globalisation should be Bentham's principle: the greatest happiness for the greatest number and the United States Declaration of Independence's famous phrase pursuit of happiness. We face the following problem: the globalization assures - due to its Nature - the growth of Z, which is the marketed part of the globalization, but not the total happiness. The main question in political philosophy is: What do we need to do in order to live together well? In complex approach, based on the wealth increase law we take into account the parameters, which will be changed by the human decisions (i) as well as the long-term expectations, which are motivating the decisions themselves (ii). Factors (i) are the followings: material goods, money, parameters of human physiology (e.g. health), psychology (knowledge), sociology (e.g. friends, power). These quantities are measurable in principle, i.e. they can be mapped into the set of real numbers. The changes are exchanges between two agents or with the nature, and there is production/consumption inside the agent.globalisation, decision theory, greatest happiness principle

Non-Equilibrium Economics

A microeconomic, agent based framework to dynamic economics is formulated in a materialist approach. An axiomatic foundation of a non-equilibrium microeconomics is outlined. Economic activity is modelled as transformation and transport of commodities (materials) owned by the agents. Rate of transformations (production intensity), and the rate of transport (trade) are defined by the agents. Economic decision rules are derived from the observed economic behaviour. The non-linear equations are solved numerically for a model economy. Numerical solutions for simple model economies suggest that the some of the results of general equilibrium economics are consequences only of the equilibrium hypothesis. We show that perfect competition of selfish agents does not guarantee the stability of economic equilibrium, but cooperativity is needed, too

Greatest Happiness Principle in a Complex System: Maximisation versus Driving Force

From philosophical point of view, micro-founded economic theories depart from the principle of the pursuit of the greatest happiness. From mathematical point of view, micro-founded economic theories depart from the utility maximisation program. Though economists are aware of the serious limitations of the equilibrium analysis, they remain in that framework. We show that the maximisation principle, which implies the equilibrium hypothesis, is responsible for this impasse. We formalise the pursuit of the greatest happiness principle by the help of the driving force postulate: the volumes of activities depend on the expected wealth increase. In that case we can get rid of the equilibrium hypothesis and have new insights into economic theory. For example, in what extent standard economic results depend on the equilibrium hypothesis

Energy in Physics and in Economy

In this paper the energy concept used in economic activity is investigated. It is not a “useful” part of physical energy, but an economically defined quantity. To reach this conclusion we first give a summary of the classification of the different concepts – all bearing the name energy. There are at least six distinct concepts to be distinguished. Three of them are scientific concepts to be differentiated. The physical (conserved) energy belongs to the realm of the first law, the energy as the ability to perform (physical, chemical) work belongs to the second law, the economic (biological) capacity for actions belongs to the (Darwinian Law)

Neumannian Economy in Multi-Agent Approach. Investigation of Stability and Instability in Economic Growth

Axiomatic foundation of non-equilibrium microeconomics is outlined. The economic activity is modelled as transformation and transport of commodities (materials) owned by the agents. Rate of transformations (production intensity), and the rate of transport (trade) are defined by the agents. Economic decision rules are derived from the observed economic behaviour. The non-linear equations are solved numerically for the Neumannian economy. The emergence of the equilibrium market structure appears as an order out of chaos process

Greatest Happiness Principle in a Complex System Approach

The principle of greatest happiness was the basis of ethics in Plato’s and Aristotle’s work, it served as the basis of utility principle in economics, and the happiness research has become a hot topic in social sciences in Western countries in particular in economics recently. Nevertheless there is a considerable scientific pessimism over whether it is even possible to affect sustainable increases in happiness. In this paper we outline an economic theory of decision based on the greatest happiness principle (GHP). Modern equilibrium economics is a simple system simplification of the GHP, the complex approach outlines a non-equilibrium economic theory. The comparison of the approaches reveals the fact that the part of the results – laws of modern economics – follow from the simplifications and they are against the economic nature. The most important consequence is that within the free market economy one cannot be sure that the path found by it leads to a beneficial economic system

On the Theory of Human Decisions in the Age of “beneficial globalization”

The globalisation is a complex phenomenon with many advantageous and disadvantageous consequences. In this paper we investigate the linkage between globalised market economy and the happiness through the ethical implications of the greatest happiness principle in a system approach. We also investigate the terms of the beneficial globalisation. Our proposition is that: the main condition of the good globalisation should be Bentham’s principle: the greatest happiness for the greatest number and the United States Declaration of Independence’s famous phrase pursuit of happiness. We face the following problem: the globalization assures – due to its Nature – the growth of Z, which is the marketed part of the globalization, but not the total happiness. The main question in political philosophy is: What do we need to do in order to live together well? In complex approach, based on the wealth increase law we take into account the parameters, which will be changed by the human decisions (i) as well as the long-term expectations, which are motivating the decisions themselves (ii). Factors (i) are the followings: material goods, money, parameters of human physiology (e.g. health), psychology (knowledge), sociology (e.g. friends, power). These quantities are measurable in principle, i.e. they can be mapped into the set of real numbers. The changes are exchanges between two agents or with the nature, and there is production/consumption inside the agent

Thermodynamic Measure for Nonequilibrium Processes

One of the most fundamental laws of Nature is formulated by the Second Law of Thermodynamics. At present, in its usual formulation the central concept is entropy characterized in terms of equilibrium state variables. We point out that because thermodynamic changes arise when systems are out of equilibrium and because entropy is not a natural state variable characterizing non-equilibrium states, a new formulation of the Second Law is required. In this paper, we introduce a new, more general, but still entropic measure that is suitable in non-equilibrium conditions as well. This new entropic measure has given a name extropy. The introduction of extropy allows us to formulate the Second Law in a more suitable and precise form, and it resolves some conceptual difficulties related to the interpretation of entropy. We point out that extropy has a fundamental significance in physics, in biology, and in our scientific worldview