Related papers: Information Entropy of the Financial Market: Model…
Given the constant rise in quantity and quality of data obtained from neural systems on many scales ranging from molecular to systems', information-theoretic analyses became increasingly necessary during the past few decades in the…
We propose a compression-based version of the empirical entropy of a finite string over a finite alphabet. Whereas previously one considers the naked entropy of (possibly higher order) Markov processes, we consider the sum of the…
We introduce a simple model for addressing the controversy in the study of financial systems, sometimes taken as brownian-like processes and other as critical systems with fluctuations of arbitrary magnitude. The model considers a…
This paper aims to show how some popular topics on social networks can be used to predict online newspaper views, related to the topics. Newspapers site and many social networks, become a good source of data to analyse and explain complex…
The simulation of quantum systems is a task for which quantum computers are believed to give an exponential speedup as compared to classical ones. While ground states of one-dimensional systems can be efficiently approximated using Matrix…
Since the 1960s, the question whether markets are efficient or not is controversially discussed. One reason for the difficulty to overcome the controversy is the lack of a universal, but also precise, quantitative definition of efficiency…
It is believed by the majority today that the efficient market hypothesis is imperfect because of market irrationality. Using the physical concepts and mathematical structures of quantum mechanics, we construct an econophysics framework for…
A general relation between entropy and an evolutionary superoperator is derived based on the theory of the real-time formulation. The formulation establishing the relation relies only on the framework of quantum statistical mechanics and…
Open quantum systems are ubiquitous in the physical sciences, with widespread applications in the areas of chemistry, condensed matter physics, material science, optics, and many more. Not surprisingly, there is significant interest in…
Empirical evidence suggests that even the most competitive markets are not strictly efficient. Price histories can be used to predict near future returns with a probability better than random chance. Many markets can be considered as {\it…
We propose the study of quantum games from the point of view of quantum information theory and statistical mechanics. Every game can be described by a density operator, the von Neumann entropy and the quantum replicator dynamics. There…
The principle of maximum entropy is a broadly applicable technique for computing a distribution with the least amount of information possible constrained to match empirical data, for instance, feature expectations. We seek to generalize…
Numerous kinds of uncertainties may affect an economy, e.g. economic, political, and environmental ones. We model the aggregate impact by the uncertainties on an economy and its associated financial market by randomised mixtures of L\'evy…
The spreading of quantum information in closed systems, often termed scrambling, is a hallmark of many-body quantum dynamics. In open systems, scrambling competes with noise, errors and decoherence. Here, we provide a universal framework…
In a previous paper, we introduced an axiomatic system for information thermodynamics, deriving an entropy function that includes both thermodynamic and information components. From this function we derived an entropic probability…
This paper gives a brief overview on the nonparametric techniques that are useful for financial econometric problems. The problems include estimation and inferences of instantaneous returns and volatility functions of time-homogeneous and…
Relations similar to work and exchange fluctuations have been recently derived for open systems dynamically evolving in the presence of an ancilla. Extending these relations and constructing a non-equilibrium Helmholtz equation we derive a…
Different notions of entropy play a fundamental role in the classical theory of dynamical systems. Unlike many other concepts used to analyze autonomous dynamics, both measure-theoretic and topological entropy can be extended quite…
We study a networked system of innovation processes, where each process is modeled as an urn with infinitely many colors-a classical framework for capturing the emergence of novelties. Extending this paradigm, we analyze a model of…
Information-theoretic measures such as relative entropy and correlation are extremely useful when modeling or analyzing the interaction of probabilistic systems. We survey the quantum generalization of 5 such measures and point out some of…