Econo-physics: A brief Introduction

Abstract

Econophysics is a growing interdisciplinary field applying mathematical (mainly statistical) techniques developed in physics to discuss economic problems related to statistical finance. Classical economics techniques have often focused on homogeneous agents and market equilibrium. Econophysics focuses attention on the impact of heterogeneous agents and non-equilibrium or chaotic situations through the use of statistics and stochastic processes and nonlinear dynamicmodels. For example, Newton's second law of motion and Schrödinger’s wave equations can be used to elucidate features of the hard and soft.