Ergodicity as a non-binary property
Traditionally, ergodicity is defined as a binary property, but it can be better understood as a spectrum.
2023-02-28 by Luca Dellanna
Traditionally, ergodicity is defined as a binary property. This definition, useful in theoretical matters, is useless for decision-making in the real world, as almost all real-world processes are non-ergodic.
Here, I introduce the concept of ergodicity as a non-binary property and suggest a few real-world applications.
The purpose of studying ergodicity
Ergodicity is one of the most important concepts in economics. If you are unfamiliar with the term, I suggest my book on the topic.
If, instead, you are familiar with the term, you might have wondered how it applies to everyday life. In particular, you might have wondered which activities in life are ergodic and which are non-ergodic.
The answer is simple. Almost everything in real life is non-ergodic. The fully ergodic mostly lives only in theory and simulations.
What's the purpose of studying ergodicity, then, if nothing is ergodic?
The answer is that, while everything is non-ergodic, something is more non-ergodic than others - and questions such as "what alternative is less non-ergodic" or "how can we make this activity less non-ergodic" matter.
I recently published a paper on ergodicity as a non-binary property, where I examine these questions. You will learn how to interpret ergodicity as a spectrum and how to apply it to real-life conditions.
