Study of the Dynamical Model for Manufacturing and Materials Market

Abstract

Econophysics is a new interdiscipline where physics concept and methods are applied to financial analysis. For example, the application of theoretical physics in the modeling of financial markets has aroused wide concern. In the process of random fluctuation of prices in financial markets, many nonlinear dynamical problems are hidden in set coefficients and assumptions, resulting in the invisibility of market price fluctuations and unavailability of hidden benefits in fluctuations. Based on the analysis of price fluctuation mechanism in financial markets, this paper analyzes the characteristics of price fluctuation, and constructs the dynamical model of price fluctuation by means of physics theory, thereby providing a theoretical reference for the control and prevention of transaction risks.