The enormous energy transformations typical of market economies, consequent on their ability to induce and harness new transformations, are ultimately the reason they are selected. As a direct extension of the Schneider and Kay hypothesis, market economies are evolutionary stable because of their efficacy in growing knowledge and increasing structural complexity a consequence, we argue, that follows from the reformulated second law of thermodynamics. Another form of the second law of thermodynamics states that the total entropy of a. Market economies have experimentally proven themselves, more than any other known institutional arrangements, to abet the production of new knowledge and structural complexity, and therefore energy degradation. The estimate of the entropy of a language by assuming that the word probabilities follow Zipfs law is discussed briefly. Entropy is the loss of energy available to do work. The Second Law is concerned with Entropy. We conclude, speculatively, that as much as life is an inevitable consequence of the reformulated entropy law, then this is also true of market economies for the same equilibrium seeking reasons. Both statements of the Second Law constrains the First Law of Thermodynamics by identifying that energy goes downhill. Energy becomes less useful as it is used, but living systems are adapted to work against this general trend. Utilizing thermoeconomic principles, this enables us to formalize the concept of economic evolution as the development of structural complexity to harness available energy from the environment to avert degradation gradients. The Conservation of Change principle derives from the basic principles of thermodynamics, specifically the second law, or law of entropy, which establishes the tendency of energy to move from more useful to less useful forms. We argue that a reformulated second law of thermodynamics recently employed by Schneider and Kay to conceptualize the relation between evolution, complexity and ecosystems can also be applied to economic systems.
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