Monotonic entropy growth for a nonlinear model of random exchanges.
We present a proof of the monotonic entropy growth for a nonlinear discrete-time model of a random market.
This model, based on binary collisions, also may be viewed as a particular case of Ulam’s redistribution of energy
problem. We represent each step of this dynamics as a combination of two processes. The first one is a linear
energy-conserving evolution of the two-particle distribution, for which the entropy growth can be easily verified.
The original nonlinear process is actually a result of a specific “coarse graining” of this linear evolution, when
after the collision one variable is integrated away. This coarse graining is of the same type as the real space
renormalization group transformation and leads to an additional entropy growth. The combination of these two
factors produces the required result which is obtained only by means of information theory inequalities.