Econophysics is the ultimate in an empirical approach. It starts with data, and chooses the least number of assumptions they can about individuals. Theory comes only after the data have spoken. In a recent paper in the Santa Fe III book edited by Brock and Durlauf, Doyne Farmer (et al) developed a zero intelligence model of agent behavior that was able to match financial data reasonably well. It is an interesting approach that I think will take off in finance, but because of its enormous data requirements, it will have a harder time in other macro areas. David Colander