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This book is a course in methods and models rooted in physics and used in modelling economic and social phenomena. It covers the discipline of econophysics, which creates an interface between physics and economics. Besides the main theme, it touches on the theory of complex networks and simulations of social phenomena in general. After a brief historical introduction, the book starts with a list of basic empirical data and proceeds to thorough investigation of mathematical and computer models. Many of the models are based on hypotheses of the behaviour of simplified agents. These comprise strategic thinking, imitation, herding, and the gem of econophysics, the so-called minority game. At the...
Lattice 89
The primary goal of this book is to present the research findings and conclusions of physicists, economists, mathematicians and financial engineers working in the field of "Econophysics" who have undertaken agent-based modelling, comparison with empirical studies and related investigations. Most standard economic models assume the existence of the representative agent, who is “perfectly rational” and applies the utility maximization principle when taking action. One reason for this is the desire to keep models mathematically tractable: no tools are available to economists for solving non-linear models of heterogeneous adaptive agents without explicit optimization. In contrast, multi-agent models, which originated from statistical physics considerations, allow us to go beyond the prototype theories of traditional economics involving the representative agent. This book is based on the Econophys-Kolkata VII Workshop, at which many such modelling efforts were presented. In the book, leading researchers in their fields report on their latest work, consider recent developments and review the contemporary literature.
Mathematical modelling of systems constituted by many agents using kinetic theory is a new tool that has proved effective in predicting the emergence of collective behaviours and self-organization. This idea has been applied by the authors to various problems which range from sociology to economics and life sciences.
Publisher description
This book is the third volume of review papers on advanced problems of phase transitions and critical phenomena, following the success of the first two volumes in 2004 and in 2007. Broadly, the book aims to demonstrate that the phase transition theory, which experienced its ‘golden age’ during the 70s and 80s, is far from over and there is still a good deal of work to be done, both at the fundamental level and in respect of applications.This volume presents a broad spectrum of problems connected with criticality. It covers its theoretical backgrounds, analytical approaches and numerical simulations to describe criticality in specific systems (ionic fluids, diluted magnets, polymers), as well as phase transitions on complex networks and in the minority game model. As the first two volumes, this book is based on the review lectures that were given in Lviv (Ukraine) at the “Ising lectures” — a traditional annual workshop on phase transitions and critical phenomena which brings together scientists working in the field with university students and those who are interested in the subject.