The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes.
A scale-free network is a network whose degree distribution follows a power law, at least asymptotically. That is, the fraction P(k) of nodes in the network having k connections to other nodes goes for large values of k as
Econophysics is a non-orthodox interdisciplinary research field, applying theories and methods originally developed by physicists in order to solve problems in economics, usually those including uncertainty or stochastic processes and nonlinear dynamics. Some of its application to the study of financial markets has also been termed statistical finance referring to its roots in statistical physics. Econophysics is closely related to social physics.
John Wishart was a Scottish mathematician and agricultural statistician.
The El Farol bar problem is a problem in game theory. Every Thursday night, a fixed population want to go have fun at the El Farol Bar, unless it's too crowded.
Quantum annealing (QA) is an optimization process for finding the global minimum of a given objective function over a given set of candidate solutions, by a process using quantum fluctuations. Quantum annealing is used mainly for problems where the search space is discrete with many local minima; such as finding the ground state of a spin glass or the traveling salesman problem. The term "quantum annealing" was first proposed in 1988 by B. Apolloni, N. Cesa Bianchi and D. De Falco as a quantum-inspired classical algorithm. It was formulated in its present form by T. Kadowaki and H. Nishimori in 1998 though an imaginary-time variant without quantum coherence had been discussed by A. B. Finnila, M. A. Gomez, C. Sebenik and J. D. Doll in 1994.
Statistical finance is the application of econophysics to financial markets. Instead of the normative roots of finance, it uses a positivist framework. It includes exemplars from statistical physics with an emphasis on emergent or collective properties of financial markets. Empirically observed stylized facts are the starting point for this approach to understanding financial markets.
D-Wave Quantum Systems Inc. is a Canadian quantum computing company, based in Burnaby, British Columbia. D-Wave claims to be the world's first company to sell computers that exploit quantum effects in their operation. D-Wave's early customers include Lockheed Martin, the University of Southern California, Google/NASA, and Los Alamos National Lab.
John Barkley Rosser Jr. was a mathematical economist and Professor of Economics at James Madison University in Harrisonburg, Virginia since 1988. He was known for work in nonlinear economic dynamics, including applications in economics of catastrophe theory, chaos theory, and complexity theory. With Marina V. Rosser he invented the concept of the "new traditional economy". He introduced into economic discourse the concepts of chaotic bubbles, chaotic hysteresis, and econochemistry. He also invented the concepts of the megacorpstate and hypercyclic morphogenesis. He was the first to provide a mathematical model of the period of financial distress in a speculative bubble. With Marina V. Rosser and Ehsan Ahmed, he was the first to argue for a two-way positive link between income inequality and the size of an underground economy in a nation. Rosser's equation has been used to forecast ratios of future Social Security benefits to current ones in real terms.
Human dynamics refer to a branch of complex systems research in statistical physics such as the movement of crowds and queues and other systems of complex human interactions including statistical modelling of human networks, including interactions over communications networks.
The clique percolation method is a popular approach for analyzing the overlapping community structure of networks. The term network community has no widely accepted unique definition and it is usually defined as a group of nodes that are more densely connected to each other than to other nodes in the network. There are numerous alternative methods for detecting communities in networks, for example, the Girvan–Newman algorithm, hierarchical clustering and modularity maximization.
Bikas Kanta Chakrabarti (born 14 December 1952 in Kolkata is an Indian physicist. At present he is INSA Scientist at the Saha Institute of Nuclear Physics & Visiting Professor at the Indian Statistical Institute, Kolkata, India.
Kinetic exchange models are multi-agent dynamic models inspired by the statistical physics of energy distribution, which try to explain the robust and universal features of income/wealth distributions.
János Kertész is a Hungarian physicist known for his contributions to the fields of econophysics, complex networks, and the application of fractal geometry in physical problems. He has played a pioneering role in these areas, expanding the understanding and applications of statistical physics and complex systems.
Quantum finance is an interdisciplinary research field, applying theories and methods developed by quantum physicists and economists in order to solve problems in finance. It is a branch of econophysics. Today several financial applications like fraud detection, portfolio optimization, product recommendation and stock price prediction are being explored using quantum computing.
A stock correlation network is a type of financial network based on stock price correlation used for observing, analyzing and predicting the stock market dynamics.
The Sznajd model or United we stand, divided we fall (USDF) model is a sociophysics model introduced in 2000 to gain fundamental understanding about opinion dynamics. The Sznajd model implements a phenomenon called social validation and thus extends the Ising spin model. In simple words, the model states:
Social physics or sociophysics is a field of science which uses mathematical tools inspired by physics to understand the behavior of human crowds. In a modern commercial use, it can also refer to the analysis of social phenomena with big data.
Jukka-Pekka Onnela is a Professor of Biostatistics at the Harvard T.H. Chan School of Public Health and Co-Director of the Health Data Science Program. Onnela is known for his pioneering research using cell phone data in network science. He was awarded the NIH Director's New Innovator Award in 2013 for his work in digital phenotyping.
Tiziana Di Matteo is a Professor of Econophysics at King's College London. She studies complex systems, such as financial markets, and complex materials. She serves on the council of the Complex Systems Society.
