Wednesday 21 March 2007

Econophysics

Seems game theory is not very promising to be able to do strategic decisions. These startegies are not a big issue as is learning in agents. Econophysics on the other hand seems good.
Coming from physics, an old passion of mine, it focuses on heterogenous agents interacting in non equilibrium situations in economics. Examples include using mechanical equilibrium to explain general equilibrum theory, or using the Black-Scholes formula for pricing is similar to heat diffusion. Wikipedia although does say that the subject is not very favoured by economists.

1 comment:

Mariam said...

There is another concept of Thermoeconomics. That states that every economic system can be viewed as a thermal system according to the first and second laws of thermodynamics. Now the key element here is maybe we can use thermodynamic approach for testing or even obtaining results.