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Economics and the Ising model

This kind of approach relies largely on models that have been developed in the context of statistical mechanics. The Ising model is also prominent in the study of economics in explaining phase transition or spontaneous structural changes in multi-factor systems. This model has been used in the study of dynamics in the propagation of information for marketing purpose. The field is usually referred to as the Social Percolation model. The team Abhijit Kar Gupta and Dietrich Stauffer [27] are some of the researchers that are using the Ising model to understand correlations in social structures. The Ising model in its traditional physical uses involves variations in energy levels for constituents and temperature levels, that influence the entire system. The context of economics renames these variables to mirror features important in the study of social impact. Word of mouth in neighbour interaction and the effects of media in a population result in percolation and phase transition behaviors in the propagation of information, behaviors that are typical of the Ising model.



Thalie Prevost
2003-12-24