Econophysics: Bridges over a Turbulent Current

TL;DR

This paper reviews the development of econophysics, distinguishing between classical and modern stages, and highlights recent advancements in understanding economic issues through physics-based approaches.

Contribution

It provides a unique taxonomy of econophysics development and summarizes key economic issues influenced by physics, supported by recent research from a 2010 colloquium.

Findings

Identification of key economic issues affected by physics

Distinction between classical and modern econophysics

Summary of recent advancements in the field

Abstract

In this editorial guide for the special issue on econophysics, we give a unique review of this young but quickly growing discipline. A suggestive taxonomy of the development is proposed by making a distinction between classical econophysics and modern econophysics. For each of these two stages of development, we identify the key economic issues whose formulations and/or treatments have been affected by physics or physicists, which includes value, business fluctuations, economic growth, economic and financial time series, the distribution of economic entities, interactions of economic agents, and economic and social networks. The recent advancements in these issues of modern econophysics are demonstrated by nine articles selected from the papers presented at the Econophysics Colloquium 2010 held at Academia Sinica in Taipei.