We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
from IV - Other quantum probabilistic effects in economics, finance, and brain sciences
Published online by Cambridge University Press: 05 July 2013
In this chapter and Chapters 11, 12, and 13, we will discuss quantum-like models with financial applications in mind. The very last chapter of this book will analyze the sources of quantum-like processing in the brain.
The concept of non-arbitrage, as we have indicated before (see Section 4.18.3) is of key importance in financial models. We reiterate its importance in this chapter. We also briefly mention a popular finance model. In the coming chapters, the wave function will sometimes have an information interpretation. Therefore we also discuss the informational aspects of the classical financial theory (see Section 10.1). This chapter is meant to introduce the reader to some of the key achievements in financial theory. By doing so, we hope to convince the reader, in later chapters, that some of those very achievements can possibly be reformulated with the help of the wave function approach. Section 10.3 in this chapter will give a flavor of how Fourier integration can possibly be used to model George Soros' concept of reflexivity.
Relevance of the concepts of efficiency and non-arbitrage: a brief discussion
With the 2008 financial crisis, the concept of efficiency may have been seriously questioned. Indeed the financial market in September 2008 did take a tremendous hit and the ensuing price movements would not be consistent with a so-called efficient market.
To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.
