Econophysics Of Markets And Business Networks

Arnab Chatterjee · Bikas K. Chakrabarti (Eds.) Econophysics of Markets and Business Networks Proceedings of the Econophys-Kolkata III 123 Arnab Chatterjee Bikas K. Chakrabarti Theoretical Condensed Matter Physics Division and Centre for Applied Mathematics and Computational Science Saha Institute of Nuclear Physics Kolkata, India Library of Congress Control Number: 2007929931 ISBN 978-88-470-0664-5 Springer Milan Berlin Heidelberg New York This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is only permitted under the provisions of the Italian Copyright Law in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the Italian Copyright Law. Springer is a part of Springer Science+Business Media springer.com © Springer-Verlag Italia 2007 Printed in Italy Cover design: Simona Colombo, Milano Cover figure: © www.pixed2000.org Typeset by the authors using a Springer Macro package Data conversion: LE-TEX Jelonek, Schmidt & Vöckler GbR, Leipzig, Germany Printing and binding: Grafiche Porpora, Segrate (MI) Springer-Verlag Italia – Via Decembrio 28 – 20137 Milano Printed on acid-free paper Preface Studies on various markets and networks by physicists are not very uncommon these days. Often the people from economics, finance and physics are not in agreement regarding the nature of the problems involved, the models investigated, or the interpretations of the solutions obtained or suggested. Nevertheless, researches, debates and dialogues do and should continue! The workshop on “Econophysics & Sociophysics of Markets & Networks”, the third in the ECONOPHYS-KOLKATA series, was organised under the auspices of the Centre for Applied Mathematics and Computational Science, Saha Institute of Nuclear Physics, Kolkata, during 12–15 March, 2007, to add to the opportunity of further discussions and dialogues. As in the previous events in the series, the motto had been to have free interactions and exchanges of ideas between the various investigators: economists, financial management people, physicists, computer scientists etc. Having achieved a level of the debates and professionally accepted (though ‘occasionally heated’) discussions, participants clearly enjoyed the creativities involved! This proceedings volume also indicates to the readers, who could not participate in the meeting, the level of activities and achievements by various groups. In Part I, the papers deal with the structure and also the dynamics of various financial markets. Some of the results here are reported for the first time. In Part II, the structures of various trade and business networks, including network of banks and firms are discussed in details. Again, several original observations and ideas have been reported here for the first time. In Part III, several market models are discussed. The readers will not mis