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How Do Microscopic Models of Financial Markets Explain?
Scientific explanation complex systems econophysics
2008/4/14
Financial theory is in trouble. Market crashes and high volatility are only too familiar to everyone, although the standard theories predict that they hardly ever occur. According to the well-known an...
In this chapter we consider economic systems, and in particular financial systems, from the perspective of the physics of complex systems (i.e. statistical physics, the theory of critical phenomena, a...
