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The recent crash demonstrated (once again) that the description of the financial market by present financial mathematics cannot be considered as totally satisfactory. We remind that nowadays financial mathematics is heavily based on the use…

General Physics · Physics 2009-02-12 Andrei Khrennikov

We define quantum-like probabilistic behaviour as behaviour which is impossible to describe by using the classical probability model. We discuss the conjecture that cognitive behaviour is quantum-like. There is presented the scheme for an…

Quantum Physics · Physics 2013-05-29 Andrei Khrennikov

We discuss the role of information entropy on the behaviour of random processes, and how this might take effect in the dynamics of financial market prices. We then go on to show how the Open Quantum Systems approach can be used as a more…

Mathematical Finance · Quantitative Finance 2024-07-01 Will Hicks

Various effects in human cognition, often considered `non-classical', have been argued to be most naturally modelled by quantum-like models of decision making. We extend this approach to describe models of cognition and decision-making in…

Neurons and Cognition · Quantitative Biology 2026-04-13 Sean Tull , Masanao Ozawa

We show that the so-called quantum probabilistic rule, usually presented in the physical literature as an argument of the essential distinction between the probability relations under quantum and classical measurements, is not, as it is…

Quantum Physics · Physics 2019-11-19 Andrei Khrennikov , Elena Loubenets

It is now a well-known fact that the correlations arising from local dichotomic measurements on an entangled quantum state may exhibit intrinsically non-classical features. In this paper we delve into a comprehensive study of random…

We start with the idea that open quantum systems can be used to represent financial markets by modelling events from the external environment and their impact on the market price. We show how to characterize distinct orbits of the time…

Mathematical Finance · Quantitative Finance 2025-05-05 Will Hicks

This paper serves as a bridge between quantum computing and analogical modeling (a general theory for predicting categories of behavior in varying contexts). Since its formulation in the early 1980s, analogical modeling has been…

Quantum Physics · Physics 2007-05-23 Royal Skousen

Modern approaches to stock pricing in quantitative finance are typically founded on the 'Black-Scholes model' and the underlying 'random walk hypothesis'. Empirical data indicate that this hypothesis works well in stable situations but, in…

General Finance · Quantitative Finance 2013-01-08 Diederik Aerts , Bart D'Hooghe , Sandro Sozzo

The present paper describes a practical example in which the probability distribution of the prices of a stock market blue chip is calculated as the wave function of a quantum particle confined in a potential well. This model may naturally…

General Finance · Quantitative Finance 2019-02-28 J. L. Subias

We reason about possible future development of quantum game theory and its impact on information processing and the emerging information society. Two of the authors have recently proposed a quantum description of financial market in terms…

Quantum Physics · Physics 2007-05-23 Ireneusz Pakula , Edward W. Piotrowski , Jan Sladkowski

We present a quantum-like (QL) model in that contexts (complexes of e.g. mental, social, biological, economic or even political conditions) are represented by complex probability amplitudes. This approach gives the possibility to apply the…

General Physics · Physics 2016-11-23 Andrei Khrennikov

This paper describes an approach to economics that is inspired by quantum computing, and is motivated by the need to develop a consistent quantum mathematical framework for economics. The traditional neoclassical approach assumes that…

General Finance · Quantitative Finance 2021-03-22 David Orrell , Monireh Houshmand

Description of nonclassicality of states has hitherto been through violation of Bell inequality and non-separability, with the latter being a stronger constraint. In this paper, we show that this can be further sharpened, by introducing the…

Quantum Physics · Physics 2015-06-18 H. M. Bharath , V. Ravishankar

Quantum computers are expected to surpass the computational capabilities of classical computers and have a transformative impact on numerous industry sectors. We present a comprehensive summary of the state of the art of quantum computing…

Quantum Physics · Physics 2023-07-24 Dylan Herman , Cody Googin , Xiaoyuan Liu , Yue Sun , Alexey Galda , Ilya Safro , Marco Pistoia , Yuri Alexeev

Both classical and respectively quantum observables can be modeled as somewhat similar examples of random variables. In such a model the associated measurements preserve the values spectrum of an observable but change the corresponding…

Statistical Mechanics · Physics 2008-03-20 S. Dumitru , A. Boer

Classical and quantum physics provide fundamentally different predictions about experiments with separate observers that do not communicate, a phenomenon known as quantum nonlocality. This insight is a key element of our present…

Quantum Physics · Physics 2017-02-17 Jonatan Bohr Brask , Rafael Chaves

Quantum advantage is notoriously hard to find and even harder to prove. For example the class of functions computable with classical physics actually exactly coincides with the class computable quantum-mechanically. It is strongly believed,…

Quantum Physics · Physics 2015-10-07 Howard Dale , David Jennings , Terry Rudolph

A scenario is outlined for quantum measurement, assuming that self-sustaining classicality is the consequence of an attractive gravitational self-interaction acting on massive bodies, and randomness arises already in the classical domain. A…

Quantum Physics · Physics 2007-05-23 Tamás Geszti

Simulation tasks are insightful tools to compare information-theoretic resources. Considering a generalization of usual Bell scenarios where external quantum inputs are provided to the parties, we show that any entangled quantum state…

Quantum Physics · Physics 2013-06-06 Denis Rosset , Cyril Branciard , Nicolas Gisin , Yeong-Cherng Liang
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