In the field of econophysics, we apply physics to economics.
You may ask, what is the justification of such technique?
It all starts from drawing parallels between physical and economic systems. For example, financial markets, just like physical systems, exhibit randomness at the microscopic scale (atoms and sub-atoms v.s. individual traders) but reveal regularities at the macroscopic level. With the right assumptions, the two systems could be considered isomorphic. The same stochastic differential equations can describe both the microscopic dynamics of particles and also the probabilistic evolution of asset prices.
In summary, we can use physics to describe financial systems.
Later, I will add some examples of econophysical concepts like the application of the quantum harmonic oscillator (QHO) to model the stock returns and the log-periodic power law (LPPL)
