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Economic systems are similar with physic systems for their large number of individuals and the exist of equilibrium. In this paper, we present a model applying the equilibrium statistical model in economic systems. Consistent with…
That science and other domains are now largely data-driven means virtually unlimited opportunities for statisticians. With great power comes responsibility, so it's imperative that statisticians ensure that the methods being developing to…
This paper introduces a novel approach to financial crisis prediction by establishing a thermodynamic-like framework derived from the fluctuation theorem of statistical physics. We define market temperature through the probability ratio of…
Quantum Darwinism offers an explanation for the emergence of classical objective features -- those we are used to at macroscopic scales -- from quantum properties at the microscopic level. The interaction of a quantum system with its…
The purpose of this essay is to bring out the unique role of Mathematics in providing a base to the diverse sciences which conform to its rigid structure. Of these the physical and economic sciences are so intimately linked with…
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…
Quantum computers are expected to surpass the computational capabilities of classical computers and have a transformative impact on numerous industry sectors. We present a comprehensive summary of the state of the art of quantum computing…
Estimating and controlling large risks has become one of the main concern of financial institutions. This requires the development of adequate statistical models and theoretical tools (which go beyond the traditionnal theories based on…
The field of Financial Networks is a paramount example of the novel applications of Statistical Physics that have made possible by the present data revolution. As the total value of the global financial market has vastly outgrown the value…
Curiously overlooked in physics is its dependence on the transmission of numbers. For example the transmission of numerical clock readings is implicit in the concept of a coordinate system. The transmission of numbers and other logical…
We develop a method to estimate producers' productivity beliefs when output quantities and input prices are unobservable, and we use it to evaluate the market for science. Our model of researchers' labor supply shows how their willingness…
Financial models do not merely analyse markets, but actively shape them. This effect, known as performativity, describes how financial theories and the subsequent actions based on them influence market processes, by creating self-fulfilling…
In physics, there is the prevailing intuition that we are part of a unique external world, and that the goal of physics is to understand and describe this world. This assumption of the fundamentality of objective reality is often seen as a…
The recent crash demonstrated (once again) that the description of the financial market by present financial mathematics cannot be considered as totally satisfactory. We remind that nowadays financial mathematics is heavily based on the use…
We study the envy-free house allocation problem when agents have uncertain preferences over items and consider several well-studied preference uncertainty models. The central problem that we focus on is computing an allocation that has the…
A variety of physical unknowables are discussed. Provable lack of physical omniscience, omnipredictability and omnipotence is derived by reduction to problems which are known to be recursively unsolvable. "Chaotic" symbolic dynamical…
Bayesian inference --- although becoming popular in physics and chemistry --- is hampered up to now by the vagueness of its notion of prior probability. Some of its supporters argue that this vagueness is the unavoidable consequence of the…
Why does such a successful theory like Quantum Mechanics have so many mysteries? The history of this theory is replete with dubious interpretations and controversies, and yet a knowledge of its predictions, however, contributed to the…
I argue that the current financial crisis highlights the crucial need of a change of mindset in economics and financial engineering, that should move away from dogmatic axioms and focus more on data, orders of magnitudes, and plausible,…
I give a highly selective overview of the way statistical mechanics explains the microscopic origins of the time asymmetric evolution of macroscopic systems towards equilibrium and of first order phase transitions in equilibrium. These…