Related papers: Econophysics as conceived by Meghnad Saha
We analyze the relationships between game theory and quantum mechanics and the extensions to statistical physics and information theory. We use certain quantization relationships to assign quantum states to the strategies of a player. These…
The simplest theories often have much merit and many limitations, and in this vein, the value of Neutral Theory (NT) has been the subject of much debate over the past 15 years. NT was proposed at the turn of the century by Stephen Hubbell…
Important gaps remain in our understanding of the thermodynamics and statistical physics of self-gravitating systems. Using mean field theory, here we investigate the equilibrium properties of several spherically symmetric model systems…
A simple heuristic model, including the multiple exchanges between economic agents, is used to explain the mechanism of emerging and maintenance of social inequality in the market economy. The model allows calculating a density function of…
There is a widespread recent interest in using ideas from statistical physics to model certain types of problems in economics and finance. The main idea is to derive the macroscopic behavior of the market from the random local interactions…
We study statistical distributions in a mechanical model for an earthquake fault introduced by Burridge and Knopoff [R. Burridge and L. Knopoff, {\sl Bull. Seismol. Soc. Am.} {\bf 57}, 341 (1967)]. Our investigations on the size (moment),…
It is known that Einstein's conceptual base for his theory of relativity was the philosophy formulated by Immanuel Kant. Things appear differently to observers in different frames. However, Kant's Ding-an-Sich leads to the existence of the…
Filyokov and Karpov [Inzhenerno-Fizicheskii Zhurnal 13, 624 (1967)] have proposed a theory of non-equilibrium steady states in direct analogy with the theory of equilibrium states : the principle is to maximize the Shannon entropy…
The probability distribution function for thermodynamics and econophysics is obtained by solving an equilibrium equation. This approach is different from the common one of optimizing the entropy of the system or obtaining the state of…
A thermodynamic approach to the description of economic systems and processes is developed. It is shown that there is a deep analogy between the parameters of thermodynamic and economic systems (markets); so each thermodynamic parameter can…
This paper studies an interacting particle system of interest in econophysics inspired from a model introduced in the physics literature. The original model consists of the customers of a single bank characterized by their capital, and the…
In 1988, Constantino Tsallis proposed an extension of the Boltzmann statistical mechanics by postulating a new entropy formula, $S_q = k_B\ln_q W$, where $W$ is the number of microstates accessible to the system, and $\ln_q$ defines a…
Statistical mechanics for states with complex eigenvalues, which are described by Gel'fand triplet and represent unstable states like resonances, are discussed on the basis of principle of equal ${\it a priori}$ probability. A new entropy…
We develop a complexity measure for large-scale economic systems based on Shannon's concept of entropy. By adopting Leontief's perspective of the production process as a circular flow, we formulate the process as a Markov chain. Then we…
This article is a follow-up of a short essay that appeared in Nature 455, 1181 (2008) [arXiv:0810.5306]. It has become increasingly clear that the erratic dynamics of markets is mostly endogenous and not due to the rational processing of…
We introduce a mathematical theory called market connectivity that gives concrete ways to both measure the efficiency of markets and find inefficiencies in large markets. The theory leads to new methods for testing the famous efficient…
Empirical evidence suggests that even the most competitive markets are not strictly efficient. Price histories can be used to predict near future returns with a probability better than random chance. Many markets can be considered as {\it…
The question about fair income inequality has been an important open question in economics and in political philosophy for over two centuries with only qualitative answers such as the ones suggested by Rawls, Nozick, and Dworkin. We…
Bekenstein and Mayo proposed a generalised bound for the entropy, which implies some inequalities between the charge, energy, angular momentum, and the size of the macroscopic system. Dain has shown that Maxwell's electrodynamics satisfies…
Maximum entropy principle identifies forces conjugated to observables and the thermodynamic relations between them, independent upon their underlying mechanistic details. For data about state distributions or transition statistics, the…