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Essentials of Econophysics Modelling

Author

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  • Slanina, Frantisek

    (Institute of Physics, Academy of Sciences of the Czech Republic)

Abstract

This book is a course in methods and models rooted in physics and used in modelling economic and social phenomena. It covers the discipline of econophysics, which creates an interface between physics and economics. Besides the main theme, it touches on the theory of complex networks and simulations of social phenomena in general. After a brief historical introduction, the book starts with a list of basic empirical data and proceeds to thorough investigation of mathematical and computer models. Many of the models are based on hypotheses of the behaviour of simplified agents. These comprise strategic thinking, imitation, herding, and the gem of econophysics, the so-called minority game. At the same time, many other models view the economic processes as interactions of inanimate particles. Here, the methods of physics are especially useful. Examples of systems modelled in such a way include books of stock-market orders, and redistribution of wealth among individuals. Network effects are investigated in the interaction of economic agents. The book also describes how to model phenomena like cooperation and emergence of consensus. The book will be of benefit to graduate students and researchers in both Physics and Economics.

Suggested Citation

  • Slanina, Frantisek, 2013. "Essentials of Econophysics Modelling," OUP Catalogue, Oxford University Press, number 9780199299683.
    • Handle: RePEc:oxp:obooks:9780199299683
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    Cited by:

    1. Thorsten Hens & Sabine Elmiger, 2019. "Economic Foundations for Finance," Springer Texts in Business and Economics, Springer, number 978-3-030-05427-4, January.
    2. Cardoso, Ben-Hur Francisco & Iglesias, José Roberto & Gonçalves, Sebastián, 2021. "Wealth concentration in systems with unbiased binary exchanges," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 579(C).
    3. Kiran Sharma & Anirban Chakraborti, 2016. "Physicists' approach to studying socio-economic inequalities: Can humans be modelled as atoms?," Papers 1606.06051, arXiv.org, revised Aug 2018.
    4. Leonardo C. Rossato & José Roberto Iglesias & Sebastian Gonçalves, 2024. "Analysis of socioeconomic indicators in the United States, Brazil, and other Latin American countries using econophysics techniques," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 97(9), pages 1-10, September.
    5. Bonggyun Ko & Jae Wook Song & Woojin Chang, 2016. "Simulation of financial market via nonlinear Ising model," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 27(04), pages 1-15, April.
    6. dos Santos, Renato Vieira & da Silva, Linaena Méricy, 2015. "Discreteness induced extinction," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 438(C), pages 17-25.
    7. Thorsten Hens & Sabine Elmiger, 2023. "Ökonomische Grundlagen der Finanzwirtschaft," Springer Books, Springer, number 978-3-031-15917-6, January.
    8. Kei Katahira & Yu Chen, 2019. "Heterogeneous wealth distribution, round-trip trading and the emergence of volatility clustering in Speculation Game," Papers 1909.03185, arXiv.org.
    9. Karl Naumann-Woleske & Michael Benzaquen & Maxim Gusev & Dimitri Kroujiline, 2021. "Capital Demand Driven Business Cycles: Mechanism and Effects," Papers 2110.00360, arXiv.org, revised Sep 2022.
    10. V'it Perv{z}ina & Jan M. Swart, 2016. "How much market making does a market need?," Papers 1612.00981, arXiv.org, revised Jun 2018.
    11. Cardoso, Ben-Hur Francisco & Gonçalves, Sebastián & Iglesias, José Roberto, 2020. "Wealth distribution models with regulations: Dynamics and equilibria," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 551(C).

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