Related papers: Quantum propensity in economics
Electricity price forecasting supports decision-making in energy markets and asset operation. Probabilistic forecasts are increasingly adopted to explicitly quantify uncertainty, typically issued as quantile predictions or ensembles of the…
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,…
The use of equilibrium models in economics springs from the desire for parsimonious models of economic phenomena that take human reasoning into account. This approach has been the cornerstone of modern economic theory. We explain why this…
Quantum computing promises to provide the next step up in computational power for diverse application areas. In this review, we examine the science behind the quantum hype, and the breakthroughs required to achieve true quantum advantage in…
The disjunction effect in human decision making is often taken to show that the classical law of total probability is violated, motivating quantum-like models. We re-examine this claim for the Prisoner's Dilemma disjunction effect. Under…
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…
Non-classical probability (along with its underlying logic) is a defining feature of quantum mechanics. A formulation that incorporates them, inherently and directly, would promise a unified description of seemingly different prescriptions…
Regression plays a key role in many research areas and its variable selection is a classic and major problem. This study emphasizes cost of predictors to be purchased for future use, when we select a subset of them. Its economic aspect is…
Quantum computers are expected to surpass the computational capabilities of classical computers during this decade and have transformative impact on numerous industry sectors, particularly finance. In fact, finance is estimated to be the…
A unified conceptual foundation of classical and quantum physics is given, free of undefined terms. Ensembles are defined by extending the `probability via expectation' approach of Whittle to noncommuting quantities. This approach carries…
Quantum computing is expected to have transformative influences on many domains, but its practical deployments on industry problems are underexplored. We focus on applying quantum computing to operations management problems in industry, and…
The transition from quantum to classical behavior is a central question in modern physics. How can we rationalize everyday classical observations from an inherently quantum world? For instance, what makes two people, each absorbing an…
Involving only the measurements of commuting observables - the problem-setting and the corresponding solution - quantum algorithms should be subject to classical logic. This would allow flanking their customary quantum description with a…
Noisy Intermediate-Scale Quantum computers are expected to be available this year. It is proposed to exploit such a device for decision making under uncertainty. The probabilistic character of quantum mechanics reflects this uncertainty.…
Within this decade, quantum computers are predicted to outperform conventional computers in terms of processing power and have a disruptive effect on a variety of business sectors. It is predicted that the financial sector would be one of…
Through extended consideration of two wide classes of case studies -- dilute gases and linear systems -- I explore the ways in which assumptions of probability and irreversibility occur in contemporary statistical mechanics, where the…
The quantitative aspirations of economists and financial analysts have for many years been based on the belief that it should be possible to build models of economic systems - and financial markets in particular - that are as predictive as…
For the classical mind, quantum mechanics is boggling enough; nevertheless more bizarre behavior could be imagined, thereby concentrating on propositional structures (empirical logics) that transcend the quantum domain. One can also…
One of the most complex systems is the human brain whose formalized functioning is characterized by decision theory. We present a "Quantum Decision Theory" of decision making, based on the mathematical theory of separable Hilbert spaces.…
In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore…