Related papers: Information Entropy of the Financial Market: Model…
We show how the concept of quantum open system and the methods in non-equilibrium statistical mechanics can be usefully applied to studies of quantum statistical processes in the early universe. We first sketch how noise, fluctuation,…
This article introduces an intrinsic entropy model that can be used as an indicator to gauge investor interest in a given exchange-traded security, along with the state of the general market corroborated by individual security trade data.…
Quantum entanglement is an essential feature of many-body systems that impacts both quantum information processing and fundamental physics. The growth of entanglement is a major challenge for classical simulation methods. In this work, we…
We present a financial market model, characterized by self-organized criticality, that is able to generate endogenously a realistic price dynamics and to reproduce well-known stylized facts. We consider a community of heterogeneous traders,…
Exploiting previous results on Markovian dynamics and fluctuation theorems, we study the consequences of memory effects on single realizations of nonequilibrium processes within an open system approach. The entropy production along single…
Here we deconstruct, and then in a reasoned way reconstruct, the concept of "entropy of a system," paying particular attention to where the randomness may be coming from. We start with the core concept of entropy as a COUNT associated with…
The notion of Shannon entropy is crucial for the theory of classical information. In quantum information theory, an analogous key role is played by the von Neumann entropy: quantum information processing is closely related to entropy…
Our knowledge of quantum mechanics can satisfactorily describe simple, microscopic systems, but is yet to explain the macroscopic everyday phenomena we observe. Here we aim to shed some light on the quantum-to-classical transition as seen…
The theory of thermal macroeconomics (TM) analyses economic phenomena within the mathematical framework of classical thermodynamics, using a set of axioms that apply to the purely macroscopic aspects of an economy [CM]. The theory shows…
We pedagogically present the information theory as originally established, explaining its essential ideas and paying attention to the expression employed to measure the amount of information. Also we discussed relationships between…
In stochastic modeling, the excess entropy -- the mutual information shared between a process's past and future -- represents the fundamental lower bound of the memory needed to simulate its dynamics. However, this bound cannot be saturated…
A well-interpretable measure of information has been recently proposed based on a partition obtained by intersecting a random sequence with its moving average. The partition yields disjoint sets of the sequence, which are then ranked…
For a simple model we derive analytic expressions of entropy exchange and coherent information, from which relations between them and the concurrence are drawn. We find that in the quantum evolution the entropy exchange exhibits behavior…
This course aims to introduce the student to random matrix models for decoherence and fidelity decay. They present a very powerful alternate approach, that emphasizes the disordered character of many environments and uncontrollable…
The paper treats the financial market as a communication system, using four information-theoretic assumptions to derive an idealized model with only one parameter. State variables are scalar stationary diffusions. The model minimizes the…
We develop a model of how information flows into a market, and derive algorithms for automatically detecting and explaining relevant events. We analyze data from twenty-two "political stock markets" (i.e., betting markets on political…
The interplay of non-classical volume, von Neumann entropy, entropy production, and ergotropy is investigated in various open quantum systems. Two categories of open quantum system models are utilized: spin-spin and spin-boson interaction…
In this essay, a general case of information systems contains quantum information systems is considered. By presenting an algorithmic method a new kind of information topology is defined and considered. Continuous maps between two…
We review the properties of the quantum relative entropy function and discuss its application to problems of classical and quantum information transfer and to quantum data compression. We then outline further uses of relative entropy to…
Maximum entropy estimation is of broad interest for inferring properties of systems across many different disciplines. In this work, we significantly extend a technique we previously introduced for estimating the maximum entropy of a set of…