Related papers: WARNING: Physics Envy May Be Hazardous To Your Wea…
Econophysics provides a strategy for understanding the potential mechanisms underlying the anomalous distribution of wealth found in real societies. We present a computational nonlinear stochastic model for the distribution of wealth that…
We propose an interpretation of physics named potentiality realism. This view, which can be applied to classical as well as to quantum physics, regards potentialities (i.e. intrinsic, objective propensities for individual events to obtain)…
Economic assessment in environmental science concerns the measurement or valuation of environmental impacts, adaptation, and vulnerability. Integrated assessment modeling is a unifying framework of environmental economics, which attempts to…
Philosophers now seem to agree that frequentism is an untenable strategy to explain the meaning of probabilities. Nevertheless, I want to revive frequentism, and I will do so by grounding probabilities on typicality in the same way as the…
A tradition handed down among physicists maintains that classical physics is a perfectly deterministic theory capable of predicting the future with absolute certainty, independently of any interpretations. It also tells that it was quantum…
A characteristical property of a classical physical theory is that the observables are real functions taking an exact outcome on every (pure) state; in a quantum theory, at the contrary, a given observable on a given state can take several…
In the present paper a model of a market consisting of real and financial interacting sectors is studied. Agents populating the stock market are assumed to be not able to observe the true underlying fundamental, and their beliefs are biased…
The clarion call for causal reduction in the study of capital markets is intensifying. However, in self-referencing and open systems such as capital markets, the idea of unidirectional causation (if applicable) may be limiting at best, and…
The human mind is endowed with innate primordial perceptions such as space, distance, motion, change, flow of time, matter. The field of cognitive science argues that the abstract concepts of mathematics are not Platonic, but are built in…
The use of science for policy is at the core of a perfect storm generated by the insurgence of several concurrent crises: of science, of trust, of sustainability. The modern positivistic model of science for policy, known as evidence based…
This paper presents a physical perspective on the human migration phenomenon claiming that human social behaviors are somehow but not completely inspired by nature. Human displacement or migration in the world is highly affected by…
With the decline of the Copenhagen interpretation of quantum mechanics and the recent experiments indicating that quantum mechanics does actually embody 'objective reality', one might ask if a 'mechanical', conceptual model for quantum…
We present an analytical model to study the role of expectation feedbacks and overlapping portfolios on systemic stability of financial systems. Building on [Corsi et al., 2016], we model a set of financial institutions having Value at Risk…
The intuitive reasoning of physicists in conditions of uncertainty is closer to the Bayesian approach than to the frequentist ideas taught at University and which are considered the reference framework for handling statistical problems. The…
Classical physics has enabled the acquisition of significant knowledge of the physical properties of nature on a standard macroscopic scale. These achievements were driven by use of the causal ontological approach (proposed originally by…
Physics seeks to uncover the laws of Nature and express them through mathematical equations. Despite the vast diversity of natural phenomena, physical equations exhibit structural regularities that set them apart from arbitrary mathematical…
The investor is interested in the expected return and he is also concerned about the risk and the uncertainty assumed by the investment. One of the most popular concepts used to measure the risk and the uncertainty is the variance and/or…
We describe the innovations in finances, introduced over the recent decades, and analyze most of the business and regulatory challenges, faced by the financial industry, because of the present disruptive changes in the global capital…
The problem of dividing resources fairly occurs in many practical situations and is therefore an important topic of study in economics. In this paper, we investigate envy-free divisions in the setting where there are multiple players in…
Quantum mechanics led to spectacular technological developments, discovery of new constituents of matter and new materials. However there is still no consensus on its interpretation and limitations. Some scientists and scientific writers…