Garibaldi U., Scalas E. Finitary Probabilistic Methods in Econophysics

Cembridge University Press, 2010. — 342 p. — ISBN: 9780521515597, ISBN–E: 9780511795916Econophysics applies the methodology of physics to the study of economics. However, whilst physicists have good understanding of statistical physics, they may be unfamiliar with recent advances in statistical conjectures, including Bayesian and predictive methods. Equally, economists with knowledge of probabilities do not have a background in statistical physics and agent-based models. Proposing a unified view for a dynamic probabilistic approach, this book is useful for advanced undergraduate and graduate students as well as researchers in physics, economics and finance. The book takes a finitary approach to the subject, discussing the essentials of applied probability, and covering finite Markov chain theory and its applications to real systems. Each chapter ends with a summary, suggestions for further reading, and exercises with solutions at the end of the book.Proposes a unified view for a dynamic probabilistic approach
Discusses the essentials of applied probability, and covers finite Markov chain theory and its applications to real systems
Each chapter contains worked examples, and exercises with solutions at the end of the book