The Creation of Economic Value

A pattern of matter, energy, and/or information has economic value if the following three conditions are jointly met:

1) Irreversibility: All value-creating economic transformations and transactions are thermodynamically irreversible.

2) Entropy: All value-creating economic transformations and transactions reduce entropy locally within the economic system, while increasing entropy globally.

3) Fitness: All value-creating economic transformations and transactions produce artifacts and/or actions that are fit for human purposes.