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Financial physics

REVIEW ARTICLE

James Feigenbaum

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In this introduction to the burgeoning field of econophysics, we review the application of self-organized criticality to economics, the Cont–Bouchaud percolation model, multiple-strategy agent-based models of financial markets, the minority game, and log-periodic precursors to financial crashes.


PACS

89.65.Gh Economics; econophysics, financial markets, business and management

02.50.Le Decision theory and game theory

05.65.+b Self-organized systems

Subjects

Computational physics

Statistical physics and nonlinear systems

Dates

Issue 10 (October 2003)

Received 28 January 2003, in final form 30 July 2003

Published 4 September 2003



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