What’s the use of “econo-physics”? Oct 28 2019 14:15 languageMoneyScience
keyboard_arrow_downkeyboard_arrow_up Visit resource
About 20 years ago, a few physicists got interested in applying some ideas and concepts from physics to problems in finance and economics. The area is sometimes called "econophysics" – I actually don't like the name – and it tends to be controversial. Some economists find it annoying, although a few others either work in the area or do work that is closely associated conceptually. On occasion, you'll find people suggesting that research in econophysics has never achieved anything worthwhile (this was seven years ago, and that writer may possibly have changed his mind by now).
Certainly, there is plenty of uninspiring work in the field, as in any area of science. It can be “cringeworthy.” Even so, lots of it isn't and I do think that physicists have made a number of lasting contributions to a deeper understanding of finance and economics; in some cases, they have helped change the direction of research in economics. So here is a very short list of some things I think physicists have achieved, things we might call success stories. Not sure if anyone else will agree.