On 13-15 čžė˙ 2000 ć. in the Institute of Zoology of Liege University (Belgium) there was held a conference on “Application of Physics in Financial Analysis”. It was organized by European Physical Society and its department of Statistic and Non-linear Physics. This is the second conference on the very theme, the preceding one took place in Dublin (Ireland) in 1999.
The goal of the conference – discussion of the market models by an interdisciplinary body, consisting of economists, finance experts, physicians and mathematicians.
In all there were more then 100 participants of the conference from all over the world. The following subjects were among the ones discussed: why distribution of a number of parameters in companies is subject to the power law; analysis of financial fluctuations; simulation of agents behavior and statphysical simulation; measuring of credit risk; percolation models enclosure to the market description: analysis of exchange currency rates dynamics, multifractal fluctuations of time series. There were also considered results of stochastic modeling of prior waitings, new approaches to determine prices of options, analyze Levi-processes in dynamics of prices, scaling analysis and others. Present situation reminds a lot the initial stage of thermodynamics and quantum mechanics development. Now, there is no reliable information about somebody earned big sum of money on the mentioned theories. However everybody agrees, that econophysical approach to finances should, in general, become much more profitable, then intuitive forecasting.
The aggregation of oral and bench reports, presented on the conference, showed the rising popularity of econophysics. According to the journal of British Institute of Physics, financial sector of economy has become one of main employers of young physicians-theorists.
The International Institute of A.Bogdanov presented the report "Economic agents evolution model based on reversible diffusion-limited aggregation rule: equal and non-equal competition". The report offered a model of economic agents competition for a resource, utilizing a well-known in physics diffusion-limited aggregation rule (DLA). The original algorithm of DLA reversible growth in the model allows to realize the so called “game with zero-sum”. Unlike traditional versions of this well-known economic model, here is also considered the agents’ environment (“the resource reservoir”). Then, the agents population becomes an “open” system, where agents can appear, grow and disappear. The participation of the Institute in the conference was partially supported with a grant of European Physical Society.