Continue the Analogy of Physics and Economics. Self-induced Transparency Mechanism as an Invisible Hand of Market

TL;DR

This paper models economic market dynamics using physics-inspired gauge field theory, revealing the invisible hand as a real, nonlinear wave process akin to self-induced transparency, providing a new physically grounded interpretation.

Contribution

It introduces a unified physics-based framework to describe market behavior, explicitly modeling the invisible hand as a dynamic field mechanism using gauge theory and nonlinear wave equations.

Findings

Market adaptation modeled as localized nonlinear waves

Invisible hand interpreted as a real field mechanism

Mathematically tractable equations derived for economic dynamics

Abstract

This paper develops a unified framework in which economic dynamics is treated as evolutionary process analogous to those studied in natural sciences, including physics. Using methods from gauge field theory and plasticity, we show that the traditionally elusive influence of the invisible hand in economic markets can be made explicit and mathematically tractable. Derived equations demonstrate that market adaptation proceeds through localized nonlinear waves processes, closely resembling self-induced transparency in electrodynamics. Taken together, the results provide a physically grounded interpretation of the invisible hand as a real, dynamically operating field mechanism governed by choice, competition, and profit.