# Physics - Econophysics

## Introduction

Econophysics is an interdisciplinary science that studies the dynamic behavior of finance and economic markets.

In order to solve the problems of economics and also to understand the dynamic behavior of the market, the econo-physicists develop applied theories.

Econophysics, sometime, is also known as the physics of finance.

It applies statistical mechanics for the economic analysis.

## Econophysics Questions

The econophysics questions include −

How to accurately measure and explain the significant properties of market dynamics?

How to stabilize the markets?

What are the different behaviors in different markets?

## Tools of Econophysics

The fundamental tools of econophysics are −

Probabilistic method

Statistical method

These two methods are borrowed from statistical physics.

**Other tools taken from Physics**Fluid dynamics

Classical mechanics

Quantum mechanics

## Models of Econophysics

Following are the major models those are used in Econophysics −

Percolation Model

Kinetic exchange models of markets

Chaotic models

Information theory

Random matrix theory

Diffusion theory