- Physics Notes for UPSC IAS Prelims (Part II)
- Physics - Home
- Physics - Introduction
- Physics - Branches
- Physics - Acoustics
- Physics - Biophysics
- Physics - Econophysics
- Physics - Geophysics
- Physics - Nanotechnology
- Physics - Neurophysics
- Physics - Psychophysics
- Physics - Astrophysics
- Physics - Measurement Units
- Major Instruments & Their Uses
- Inventions and Inventors in Physics
- Physics - Timeline in Physics
- Physics - Unsolved Problems
- Physics - Terminologies in Physics
- Major Theories and Laws in Physics
- Physics - Nobel Prize in Physics
- Physics - Awards Given in Physics
- Scientific Units Named After Inventors
- Physics - Top Institutes
- Physics Useful Resources
- Physics Part 2 - Online Quiz
- Physics Part 2 - Online Test
- Physics Part 2 - Quick Guide
- Physics - Useful Resources
- Physics - Discussion
- Selected Reading
- UPSC IAS Exams Notes
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- Questions and Answers
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Physics - Econophysics
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.
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 −
These two methods are borrowed from statistical physics.
Other tools taken from Physics
Models of Econophysics
Following are the major models those are used in Econophysics −
Kinetic exchange models of markets
Random matrix theory