Importance and impact of methods and techniques developed for studying physical problems has outreached the realm of natural sciences. Methods of quantum physics and statistical mechanics find more and more applications in biology, economy, informatics, or sociology. Physics has become one of the most important components of a number of new interdisciplinary research fields. Econophysics utilises methods of statistical mechanics and theory of phase transitions to model and understand processes in economy and financial markets.
Dr František Slanina from the Condensed Matter Theory department of the Institute of Physics of the Academy of Sciences of the Czech Republic, is one of the leading scientists in this field in the Czech Republic. His own research contributed to the development of the field and is a worldwide renowned expert. He was approached by representatives of the publishing house Oxford University Press to write a monograph covering the state of the art of Econophysics. After a few years of intense work, commitment and determination he finally succeeded to complete the book Essentials of Econophysics Modelling that just was published in the Oxford University Press.
This book is a course in methods and models rooted in physics and used in modelling economic and social phenomena. It covers the discipline of econophysics, which creates an interface between physics and economics. Besides the main theme, it touches on the theory of complex networks and simulations of social phenomena in general.
After a brief historical introduction, the book starts with a list of basic empirical data and proceeds to thorough investigation of mathematical and computer models. Many of the models are based on hypotheses of the behaviour of simplified agents. These comprise strategic thinking, imitation, herding, and the gem of econophysics, the so-called minority game. At the same time, many other models view the economic processes as interactions of inanimate particles. Here, the methods of physics are especially useful. Examples of systems modelled in such a way include books of stock-market orders, and redistribution of wealth among individuals. Network effects are investigated in the interaction of economic agents. The book also describes how to model phenomena like cooperation and emergence of consensus.
The book will be of benefit to graduate students and researchers in both Physics and Economics. Its importance is summarised by Prof. S. Solomon of Racah Institute of Physics of the Hebrew University in Jerusalem: "František Slanina’s monumental monograph is the best up-to-date account of econophysics. The author offers a clear, yet deep and complex view of the subject, its conceptual and technical foundations, its past successes, and its future outlook. It is a must for anyone interested in understanding or participating in the momentous current development of new interdisciplinary methods for the study of economic phenomena".
Contact: František Slanina, Institute of Physics ASCR, Na Slovance 2, CZ-182 21 Praha 8,
tel: +420 26605 2671, e-mail: slanina [at] fzu [dot] cz