Game theory, Entropy, Experimental economics, Modeling
Game theory can enhance our understanding of the real world and provide valuable suggestions for policy development. However, the limitations of models must be carefully considered during interpretation and policy application because certain models are too simple to provide useful policy advice (Madani, 2013). In our opinion, the more accurate the model is, the more complicated is the resulting strategy. Therefore, an appropriate level of model accuracy is required.
Several scholars, particularly in the field of ecological economics, have examined the relationship between energy consumption and economic activity (Cleveland et al., 1984). Biophysical economists contend that the laws of the physical sciences must constrain the choices of an economic agent (Dale et al., 2012). Since the publication of “The Entropy Law and the Economic Process” (Georgescu-Roegen, 1971), the question of whether physical laws, such as entropy or conservation of mass and energy, are relevant to economic analysis has been disputed (Krysiak, 2006). Herein, we aim to understand human society in the ecosystem using conceptual modeling, experimental economics, thermodynamics, and ecological theory.
We are grateful to the advisor for helpful suggestions. Any remaining errors are the authors’ alone.
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