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Quantum theory provides a comprehensive framework for quantifying uncertainty, often applied in quantum finance to explore the stochastic nature of asset returns. This perspective likens returns to microscopic particle motion, governed by…

Mathematical Finance · Quantitative Finance 2024-01-12 Li Lin

Beginning with several basic hypotheses of quantum mechanics, we give a new quantum model in econophysics. In this model, we define wave functions and operators of the stock market to establish the Schr\"odinger equation for the stock…

Statistical Finance · Quantitative Finance 2010-10-19 Chao Zhang , Lu Huang

The probability distribution function (PDF) for prices on financial markets is derived by extremization of Fisher information. It is shown how on that basis the quantum-like description for financial markets arises and different financial…

Statistical Finance · Quantitative Finance 2015-04-16 Vadim Nastasiuk

We propose a quantum-like description of markets and economics. The approach has roots in the recently developed quantum game theory.

Quantum Physics · Physics 2015-06-26 E. W. Piotrowski , J. Sladkowski

The trade of a fixed stock can be regarded as the basic process that measures its momentary price. The stock price is exactly known only at the time of sale when the stock is between traders, that is, only in the case when the owner is…

General Finance · Quantitative Finance 2014-12-12 Liviu-Adrian Cotfas

Involving effects of media, opinion leader and other agents on the opinion of individuals of market society, a trader based model is developed and utilized to simulate price via supply and demand. Pronounced effects are considered with…

Physics and Society · Physics 2009-11-11 Caglar Tuncay

Fisher information measures a disorder system, which is specified by a corresponding probability, the likelihood. In this article, we provide a bridge to connect classical and quantum mechanics by using Fisher information. Following the…

Quantum Physics · Physics 2014-12-30 Tzu-Chao Hung

We propose a simple statistical-physics-inspired model for the effect of intrinsic fluctuations on supply and demand in markets. The model consists of agents that trade in two types of goods of which the total number is separately…

Physics and Society · Physics 2021-01-13 J. R. Mulder , René van Roij , R. A. Duine

A recent model for the stock market calculates future price distributions of a stock as a wave function of a quantum particle confined in an infinite potential well. In such a model the question arose as to how to estimate the classical…

General Finance · Quantitative Finance 2020-04-15 J. L. Subias

Writing the article-Time independent pricing of options in range bound markets; the question in the title came naturally to my mind. It is stated, in the above article, that in certain market conditions the stock price is subjected to an…

General Finance · Quantitative Finance 2013-05-08 Ovidiu Racorean

Any time-dependent solution of Schr\"{o}dinger equation may be always correlated to a solution of Hamilton equations or to a statistical combination of their solutions; only the set of corresponding solutions is somewhat smaller (due to…

Quantum Physics · Physics 2012-05-31 Milos V. Lokajicek

We continue the analysis of quantum-like description of markets and economics. The approach has roots in the recently developed quantum game theory and quantum computing. The present paper is devoted to quantum English auction which are a…

Quantum Physics · Physics 2007-05-23 E. W. Piotrowski , J. Sladkowski

The price of a given stock is exactly known only at the time of sale when the stock is between the traders. If we know the price (owner) then we have no information on the owner (price). A more general description including cases when we…

General Finance · Quantitative Finance 2012-09-06 Liviu-Adrian Cotfas

A striking feature of standard quantum mechanics is its analogy with classical fluid dynamics. In particular it is well known the Schr\"{o}dinger equation can be viewed as describing a classical compressible and non-viscous fluid, described…

Quantum Physics · Physics 2009-11-13 M. Tessarotto , M. Ellero , P. Nicolini

The game in which acts of participants don't have an adequate description in terms of Boolean logic and classical theory of probabilities is considered. The model of the game interaction is constructed on the basis of a non-distributive…

Quantum Physics · Physics 2007-05-23 Andrey Grib , Georges Parfionov

The master equation describing non-equilibrium one-dimensional problems like diffusion limited reactions or critical dynamics of classical spin systems can be written as a Schr\"odinger equation in which the wave function is the probability…

High Energy Physics - Theory · Physics 2016-09-06 Francisco C. Alcaraz , Michel Droz , Malte Henkel , Vladimir Rittenberg

We develop a theory of securities price formation and dynamics based on quantum approach and without presuming any similarities with quantum mechanics. Disorder introduced by trading environment leads to probability distribution of returns…

Trading and Market Microstructure · Quantitative Finance 2016-05-19 Jack Sarkissian

It is shown that Schroedinger's equation may be derived from three postulates. The first is a kind of statistical metamorphosis of classical mechanics, a set of two relations which are obtained from the canonical equations of particle…

Quantum Physics · Physics 2011-03-09 U. Klein

Quantum technology is seeing a remarkable explosion in interest due to a wave of successful commercial technology. As a wider array of engineers and scientists are needed, it is time we rethink quantum educational paradigms. Current…

Popular Physics · Physics 2020-03-23 James Daniel Whitfield

We present a finite-dimensional version of the quantum model for the stock market proposed in [C. Zhang and L. Huang, A quantum model for the stock market, Physica A 389(2010) 5769]. Our approach is an attempt to make this model consistent…

General Finance · Quantitative Finance 2012-11-09 Liviu-Adrian Cotfas
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