The Rise of Econophysics

Aggregates, emergent properties and complexity are at the heart of econophysics, an approach to economics and finance based on statistical mechanics.

An exploration of the emergence of a new field of research, known as econophysics, which brings to the fore concepts such as emergent properties, power laws, networks, entropy, and multifractality, thereby reshaping economic enquiry.Classical mechanics provided the conceptual and methodological foundations of neoclassical economics, which has its roots in economic individualism. Since the early twentieth century, statistical mechanics has underpinned a lesser-known approach to economics and finance, one that focuses on aggregates and the interactions between individuals. This has led to the emergence of a new field of research, known as econophysics, which brings to the fore concepts such as emergent properties, power laws, networks, entropy, and multifractality, thereby reshaping economic enquiry.