Related papers: Quantum propensity in economics
Quantum computers have the potential to provide an advantage for financial pricing problems by the use of quantum estimation. In a broader context, it is reasonable to ask about situations where the market and the assets traded on the…
It is known in the context of decentralised control that there exist control strategies consistent with the requirements of a given information structure, yet physically unimplementable through any amount of passive common randomness. This…
It is now well established empirically that financial price changes are distributed according to a power law, with cubic exponent. This is a fascinating regularity, as it holds for various classes of securities, on various markets, and on…
This paper introduces the concept of an economic action constant, denoted ___ E , as a structural analogue to Planck's reduced constant ___ in quantum mechanics. Building on canonical quantization, we define ___ E as the fundamental scale…
Quantum superposition, a cornerstone of quantum mechanics, enables systems to exist in multiple states simultaneously, giving rise to probabilistic outcomes. In quantum information science, conditional entropy has become a key metric for…
Research on quantum technology spans multiple disciplines: physics, computer science, engineering, and mathematics. The objective of this manuscript is to provide an accessible introduction to this emerging field for economists that is…
We characterize the class of quantum measurements that matches the applications of quantum theory to cognition (and decision making) - quantum-like modeling. Projective measurements describe the canonical measurements of the basic…
A statistical generalization is made of microeconomics in the spirit of going from classical to statistical mechanics. The price and quantity of every commodity1 traded in the market, at each instant of time, is considered to be an…
Most people are risk-averse (risk-seeking) when they expect to gain (lose). Based on a generalization of ``expected utility theory'' which takes this into account, we introduce an automaton mimicking the dynamics of economic operations.…
We propose a definition of nonclassicality for a single-mode quantum-optical process based on its action on coherent states. If a quantum process transforms a coherent state to a nonclassical state, it is verified to be nonclassical. To…
Effective epidemic control is crucial for mitigating the spread of infectious diseases, particularly when pharmaceutical interventions such as vaccines or treatments are limited. Non-pharmaceutical strategies, including mobility…
Nontransitive choices have long been an area of curiosity within economics. However, determining whether nontransitive choices represent an individual's preference is a difficult task since choice data is inherently stochastic. This paper…
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…
Is quantum mechanics about 'states'? Or is it basically another kind of probability theory? It is argued that the elementary formalism of quantum mechanics operates as a well-justified alternative to 'classical' instantiations of a…
In classical Machine Learning, "overfitting" is the phenomenon occurring when a given model learns the training data excessively well, and it thus performs poorly on unseen data. A commonly employed technique in Machine Learning is the so…
The relationship between expectation and price is commonly established with two principles: no-arbitrage, which asserts that both maps are positive; and equivalence, which asserts that the maps share the same null events. Constructed from…
We consider the following model of decision-making by cognitive systems. We present an algorithm -- quantum-like representation algorithm (QLRA) -- which provides a possibility to represent probabilistic data of any origin by complex…
Causal influences are at the core of any empirical science, the reason why its quantification is of paramount relevance for the mathematical theory of causality and applications. Quantum correlations, however, challenge our notion of cause…
Quantum computers promise to surpass the most powerful classical supercomputers when it comes to solving many critically important practical problems, such as pharmaceutical and fertilizer design, supply chain and traffic optimization, or…
Portfolio construction has been a long-standing topic of research in finance. The computational complexity and the time taken both increase rapidly with the number of investments in the portfolio. It becomes difficult, even impossible for…