10. Econophysics and Companies—Statistical Life and Death in Complex Business

Abstract

While the term ‘econophysics’ is relatively new having been coined in the 1990s by the famous physicist Eugene Stanley, there are already quite a few books that deal with some aspects or the other of this new discipline. What makes the present title interesting is that the authors have focussed on applying the insights of statistical physics to business firms and their decision making. The book begins with an interesting prologue which is a parody of the first day interlocutions between Salviati, Sagredo and Simplicio (Chapter 1). This prepares the reader with the perspective and indicates the creation of a scientific view which is likely to stir as much opposition from the conservatives (read traditional economists) as Galileo did.