1. Introduction

The application of thermodynamic principles, particularly entropy, to domains beyond physics has been a fertile area of interdisciplinary research. Two prominent frameworks that employ such principles are the Theory of Entropicity (ToE), as first formulated and developed by John Onimisi Obidi,^[1][2][3] a foundational hypothesis in physics and intelligence studies, and the Thermodynamic Electrochemical Quantum (TEQ) model, a financial market analysis tool developed by David Sigterman.^[4] While both utilize concepts of entropy and system evolution, they differ fundamentally in their scope, aims, and level of universality. This entry provides a comparative analysis, concluding that the Theory of Entropicity is the more extensive framework, serving as a potential meta-theory under which applied models like TEQ can be contextualized.

2. Theory of Entropicity (ToE)

The Theory of Entropicity is a proposed fundamental principle that posits a connection between intelligence, causality, and entropy. Its most formal articulation is credited to John Onimisi Obidi, who first formulated and developed the Theory.

2.1. Core Principle

The theory states that intelligent behavior and causal actions arise from a force that maximizes future freedom of action. This is mathematically framed as the maximization of the entropy of an agent's future possible states. In essence, systems act to preserve or increase their options in a future state space.

2.2. Scope and Extensiveness

The ToE is a universal and foundational theory. Its proponents argue it provides a unifying framework for:

  · Intelligence: Explaining the behavior of intelligent agents, from biological organisms to artificial intelligence, as a physical process driven by entropy maximization.

  · Physical Laws: Offering a potential derivation for why certain physical laws and structures emerge.

  · Complex Systems: Serving as a grand principle underlying adaptation, emergence, and complexity across cosmology, biology, and computer science.

  · The ToE's primary extensiveness lies in its breadth, as it aims to be a first-principles explanation for a vast range of phenomena.

3. Thermodynamic Electrochemical Quantum (TEQ) Model

The TEQ model is a specialized analytical framework developed by investor and entrepreneur David Sigterman for understanding financial markets and economic systems.

3.1. Core Principle

The TEQ model applies analogies from thermodynamics (e.g., entropy, energy gradients), electrochemistry (e.g., potentials, flows), and quantum mechanics (e.g., probability, uncertainty) to model the behavior of market participants and the flow of capital. It views market dynamics as a complex system where entropic pressure builds and is released, leading to predictable regime changes.

3.2. Scope and Extensiveness

The TEQ model is an applied, domain-specific theory. Its extensiveness is demonstrated in its depth and detailed application within its niche. It provides a structured methodology for:

  · Modeling collective investor psychology as statistical energy states.

  · Analyzing information and capital flows as thermodynamic processes.

  · Forecasting transitions between ordered (trending) and disordered (volatile) market phases.

4. Comparative Analysis

The key distinction between the two frameworks lies in their universality versus their specificity.

· Scope: The Theory of Entropicity proposes a universal law applicable to intelligence and physics broadly. In contrast, the TEQ model is a specialized application for financial economics.

· Nature: The ToE is a fundamental scientific hypothesis. The TEQ model is a practical analytical tool for market participants.

· Extensiveness: The ToE is more extensive in its breadth, aiming to explain foundational phenomena across multiple disciplines. The TEQ model is extensive in its depth, offering a comprehensive model for a single, albeit complex, domain.

· Relationship: The TEQ model can be interpreted as a specific instantiation of the broader principles outlined in the Theory of Entropicity. The ToE provides the overarching theoretical justification for why entropic frameworks can be productively applied to complex, adaptive systems like financial markets.

5. Conclusion

While both the Theory of Entropicity and the TEQ model leverage the concept of entropy to explain complex systems, the ToE is the more extensive framework. Its ambition is to serve as a universal principle underlying intelligence and causality, thereby providing a foundational context for specialized models. The TEQ model, as developed by David Sigterman, represents a sophisticated and extensive application of such entropic thinking, demonstrating the utility of these principles within the specific domain of finance. The relationship between the two underscores a broader trend in science: the migration of fundamental physical concepts into the social and economic sciences to create more powerful explanatory models.

This entry is adapted from: Obidi, John Onimisi (2025). On the Conceptual and Mathematical Foundations of the Theory of Entropicity (ToE): An Alternative Path toward Quantum Gravity and the Unification of Physics. https://doi.org/10.6084/m9.figshare.30337396.v1