An anonymous reader writes: A Purdue University researcher has used “econophysics” to show that under ideal circumstances free markets promote fair salaries for workers and do not support CEO compensation practices common today. The research presents a new perspective on 18th century economist Adam Smith’s concept that an “invisible hand” drives a free market economy to a collective good. “This is at the intersection of physics and economics,” said the lead researcher. “We are generalizing concepts from statistical thermodynamics – the branch of physics that describes the behavior of gases, liquids and solids under heat – to analyze how free markets should perform ideally.” Result: While the free market seems to work darn well for setting salaries for 95% of the workforce, the top 5% are wildly overpaid.