Guest Editorial
Frank Schweitzer, Dirk Helbing
Can physicists contribute to the field of economics? In fact, the recent
progress in the understanding of non-equilibrium phenomena in complex
systems has initiated a lot of activities in analyzing, modelling and
simulating ``living'' systems with methods from statistical physics.
Already in the early seventies, physicists have also realized that these
methods can help to understand social phenomena, such as opinion
formation, migration, and settlement formation. But only very recently,
physicists have focussed their interdisciplinary interests to particular
economic processes, such as trading, market dynamics, or company growth.
Especially, the dynamics of financial markets attracted a considerable
research potential within statistical physics.
It is the availability of huge databases which makes this field so
attractive and promising, since it allows not only to perform empirical
studies, but also to develop, calibrate and test models of economic
dynamics.
The joint efforts of many research groups spread over the world
eventually lead to the establishment of econophysics - a young
and fast growing field, the potential importance of which can be hardly
overestimated. Even with the analysis of financial time series as its
current focus, econophysics is meant to be a more comprehensive
enterprise. Basically, econophysics focusses on the question how and to
what extent methods from statistical physics can be used for the
analysis, modeling, simulation, and optimization of economic systems.
In order to broaden this perspective, we were happy to conduct an
international workshop on Economic Dynamics from the Physics Point
of View, which was organized as the the 229th WE-Heraeus Seminar and
took place in the Physics Center Bad Honnef between 27th and 30th of
April, 2000 (see ./WEH-workshop.html
for details). In spite of the coincidence with the big spring meeting of
the German Physical Society, we received more than 160 applications for
participation, from which we could consider only 40 percent because of
limitations of capacities. Finally, 73 scientists from 22 countries
attended the workshop and presented about 60 contributions. In order to
establish a contructive dialog between the disciplines, we had also
invited a number of renowned economists, and we were really impressed
about the engaged interdisciplinary discussions that emerged. Of course,
it is not only economists who are interested in a methodological
transfer. Statistical physicists are also looking for new scientific
challenges, where they can use the various methods from statistical
physics and non-linear dynamics for a deeper understanding of complex
systems with potential applications.
Basically, the workshop concentrated on two main problems: (i) the
analysis of economic time series and other data with the aim of
determining scaling laws and correlations, (ii) the investigation of
microscopic models which mimic economic systems based on non-linear
interactions of a large number of elements. Further topics were the
statistical modeling of decision processes, the emergence of collective
dynamics and chaos in socio-economic systems, as well as possibilities to
control them.
The particular emphasis of the workshop on dynamic micro-models intends
to provide insight into economic interactions, which may eventually
explain the complex dynamics in the data observed. Similar to physics,
where the structure, properties and dynamics of matter can be deduced
from microscopic interaction laws, one would finally like to explain the
observed macroscopic dynamics of organizations or companies, markets, and
prizes based on non-linear interactions among a huge number of different
individuals (agents).
The various contributions of the workshop are published in the present issue of
Physica A and in a special issue of Advances in Complex
Systems. Both special issues have their own focus: Contributions with a
close relation to statistical physics, especially those dealing with time
series analysis of economic data, have been selected for Physica A, while papers focussing on
multi-agent approaches to market behavior, technological evolution and
applications of neural network techniques have been selected for Advances in Complex Systems.
It is the wish of the guest editors, that the present special issue, with
its overview of the application potential of physical methods to economic
subjects, will stimulate fruitful discussions among physicists and
experts in the socio-economic sciences and further the international
activities and cooperation in the field of econophysics. Finally, we
would like to thank the WE-Heraeus foundation for its generous financial
support and the Physics Center Bad Honnef for the warm hospitality, which
has very much supported the scientific exchange among the participants of
the workshop.
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