Econophysics: Bridges over a turbulent current

Abstract

In this editorial guide for the special issue on econophysics, we give a unique review of this young but quickly growing discipline. A suggestive taxonomy of the development is proposed by making a distinction between classical econophysics and modern econophysics. For each of these two stages of development, we identify the key economic issues whose formulations and/or treatments have been affected by physics or physicists, which includes value, business fluctuations, economic growth, economic and financial time series, the distribution of economic entities, interactions of economic agents, and economic and social networks. The recent advancements in these issues of modern econophysics are demonstrated by nine articles selected from the papers presented at the Econophysics Colloquium 2010 held at Academia Sinica in Taipei.

On the 'Usual' Misunderstandings between Econophysics and Finance: Some Clarifications on Modelling Approaches and Efficient Market Hypothesis

“…This article is a contribution in line with the recent research aiming to increase the dialogue between physicists (particularly econophysicists) and financial economists (Ausloos, 2001(Ausloos, , 2013Bouchaud, 2002;Bouchaud et al, 2002;Carbone et al, 2007;Chakrabarti & Chakraborti, 2010;Chen & Li, 2012;Durlauf, 2005Durlauf, , 2012Farmer & Lux, 2008;Gabaix, 2009;, 2016Keen, 2003;Lux, 2009;McCauley, 2006McCauley, , 2009McCauley et al, 2007;Sornette, 2014;Stanley & Plerou, 2001). Actually, a recent article by Sornette (2014) offers a titillating example of largely widespread confusions about the distinction between econophysics and financial economics.…”

On the “usual” misunderstandings between econophysics and finance: Some clarifications on modelling approaches and efficient market hypothesis

“…This article is a contribution in line with the recent research aiming to increase the dialogue between physicists (particularly econophysicists) and financial economists (Ausloos, 2001(Ausloos, , 2013Bouchaud, 2002;Bouchaud et al, 2002;Carbone et al, 2007;Chakrabarti & Chakraborti, 2010;Chen & Li, 2012;Durlauf, 2005Durlauf, , 2012Farmer & Lux, 2008;Gabaix, 2009;, 2016Keen, 2003;Lux, 2009;McCauley, 2006McCauley, , 2009McCauley et al, 2007;Sornette, 2014;Stanley & Plerou, 2001). Actually, a recent article by Sornette (2014) offers a titillating example of largely widespread confusions about the distinction between econophysics and financial economics.…”

Breaking down the Barriers between Econophysics and Financial Economics

“…Consequently, due to these differences, it is more difficult for econophysicists to get past the gatekeepers of financial economics journals. However, beyond this observation, we must stress that in recent years more and more joint publications (such as this special issue, for example) and research have been developed, taking part in bridging the gap between these two scientific cultures (Ausloos, 2001;Bouchaud, 2002;Carbone et al, 2007;Chakrabarti & Chakraborti, 2010;Chen & Li, 2012;Durlauf, 2005;Farmer & Lux, 2008;Gabaix, 2009;Keen, 2003;Lux, 2009;McCauley, 2006;Stanley & Plerou, 2001).…”