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Quantum Economics
Quantum economics is an emerging research field which applies mathematical methods and ideas from quantum physics to the field of economics. It is motivated by the belief that economic processes such as financial transactions have much in common with quantum processes, and can be appropriately modeled using the quantum formalism. It draws on techniques from the related areas of quantum finance and quantum cognition, and is a sub-field of quantum social science. History A number of economists including Paul Samuelson and Bernard Schmitt (whose "quantum macroeconomics" treated production as an instantaneous emission) have found inspiration in quantum theory. Perhaps the first to directly exploit quantum techniques in economic analysis, however, was the Pakistani mathematician Asghar Qadir. In his 1978 paper ''Quantum Economics'', he argued that the formalism of quantum mechanics is the best mathematical framework for modeling situations where "consumer behavior depends on infini ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quantum Physics
Quantum mechanics is a fundamental theory in physics that provides a description of the physical properties of nature at the scale of atoms and subatomic particles. It is the foundation of all quantum physics including quantum chemistry, quantum field theory, quantum technology, and quantum information science. Classical physics, the collection of theories that existed before the advent of quantum mechanics, describes many aspects of nature at an ordinary (macroscopic) scale, but is not sufficient for describing them at small (atomic and subatomic) scales. Most theories in classical physics can be derived from quantum mechanics as an approximation valid at large (macroscopic) scale. Quantum mechanics differs from classical physics in that energy, momentum, angular momentum, and other quantities of a bound system are restricted to discrete values ( quantization); objects have characteristics of both particles and waves (wave–particle duality); and there are limits to ho ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
David Orrell
David John Orrell (born 1962 in Edmonton) is a Canadian writer and mathematician. He received his doctorate in mathematics from the University of Oxford. His work in the prediction of complex systems such as the weather, genetics and the economy has been featured in New Scientist, the Financial Times, The Economist, Adbusters, BBC Radio, Russia-1, and CBC TV. He now conducts research and writes in the areas of systems biology and economics, and runs a mathematical consultancy Systems Forecasting. He is the son of theatre historian and English professor John Orrell. His books have been translated into over ten languages. '' Apollo's Arrow: The Science of Prediction and the Future of Everything'' was a national bestseller and finalist for the 2007 Canadian Science Writers' Award. ''Economyths: Ten Ways Economics Gets It Wrong'' was a finalist for the 2011 National Business Book Award. Criticism of use of mathematical models A consistent topic in Orrell’s work is the limitations of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quantum Game Theory
Quantum game theory is an extension of classical game theory to the quantum domain. It differs from classical game theory in three primary ways: # Superposed initial states, #Quantum entanglement of initial states, #Superposition of strategies to be used on the initial states. This theory is based on the physics of information much like quantum computing. History In 1999, a professor in the math department at the University of California at San Diego named David A. Meyer first published ''Quantum Strategies'' which details a quantum version of the classical game theory game, matching pennies. In the quantum version, players are allowed access to quantum signals through the phenomenon of quantum entanglement. Superposed initial states The information transfer that occurs during a game can be viewed as a physical process. In the simplest case of a classical game between two players with two strategies each, both the players can use a bit (a '0' or a '1') to convey their choice of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Efficient Market Theory
The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information. Because the EMH is formulated in terms of risk adjustment, it only makes testable predictions when coupled with a particular model of risk. As a result, research in financial economics since at least the 1990s has focused on market anomalies, that is, deviations from specific models of risk. The idea that financial market returns are difficult to predict goes back to Bachelier, Mandelbrot, and Samuelson, but is closely associated with Eugene Fama, in part due to his influential 1970 review of the theoretical and empirical research. The EMH provides the basic logic for modern risk-based theories of asset prices, and frameworks such as consumption-based asset pricing and int ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Didier Sornette
Didier Sornette (born June 25, 1957 in Paris) is a French researcher studying subjects including complex systems and risk management. He is Professor on the Chair of Entrepreneurial Risks at the Swiss Federal Institute of Technology Zurich (ETH Zurich) and is also a professor of the Swiss Finance Institute, He was previously a Professor of Geophysics at UCLA, Los Angeles California (1996–2006) and a Research Professor at the French National Centre for Scientific Research (1981–2006). Theory of earthquakes and fault networks With his long-time collaborator Dr. Guy Ouillon, Sornette has been leading a research group on the “Physics of earthquakes” over the last 25 years. The group is active in the modelling of earthquakes, landslides, and other natural hazards, combining concepts and tools from statistical physics, statistics, tectonics, seismology and more. First located at the Laboratory of Condensed Matter Physics (University of Nice, France), then at the Earth and Sp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Classical Logic
Classical logic (or standard logic or Frege-Russell logic) is the intensively studied and most widely used class of deductive logic. Classical logic has had much influence on analytic philosophy. Characteristics Each logical system in this class shares characteristic properties: Gabbay, Dov, (1994). 'Classical vs non-classical logic'. In D.M. Gabbay, C.J. Hogger, and J.A. Robinson, (Eds), ''Handbook of Logic in Artificial Intelligence and Logic Programming'', volume 2, chapter 2.6. Oxford University Press. # Law of excluded middle and double negation elimination # Law of noncontradiction, and the principle of explosion # Monotonicity of entailment and idempotency of entailment # Commutativity of conjunction # De Morgan duality: every logical operator is dual to another While not entailed by the preceding conditions, contemporary discussions of classical logic normally only include propositional and first-order logics. Shapiro, Stewart (2000). Classical Logic. In Stanford Encyclop ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Behavioral Economics
Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals or institutions, such as how those decisions vary from those implied by classical economic theory. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory. The study of behavioral economics includes how market decisions are made and the mechanisms that drive public opinion. The concepts used in behavioral economics today can be traced back to 18th-century economists, such as Adam Smith, who deliberated how the economic behavior of individuals could be influenced by their desires. The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century. Behavio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Probability Theory
Probability theory is the branch of mathematics concerned with probability. Although there are several different probability interpretations, probability theory treats the concept in a rigorous mathematical manner by expressing it through a set of axioms. Typically these axioms formalise probability in terms of a probability space, which assigns a measure taking values between 0 and 1, termed the probability measure, to a set of outcomes called the sample space. Any specified subset of the sample space is called an event. Central subjects in probability theory include discrete and continuous random variables, probability distributions, and stochastic processes (which provide mathematical abstractions of non-deterministic or uncertain processes or measured quantities that may either be single occurrences or evolve over time in a random fashion). Although it is not possible to perfectly predict random events, much can be said about their behavior. Two major results in probability ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Preference (economics)
In economics and other social sciences, preference is the order that an agent gives to alternatives based on their relative utility. A process which results in an "optimal choice" (whether real or theoretical). Preferences are evaluations and concern matters of value, typically in relation to practical reasoning. The character of the preferences is determined purely by a person's tastes instead of the good's prices, personal income, and the availability of goods. However, people are still expected to act in their best (rational) interest. Rationality, in this context, means that when individuals are faced with a choice, they would select the option that maximizes self-interest. Moreover, in every set of alternatives, preferences arise. The belief of preference plays a key role in many disciplines, including moral philosophy and decision theory. The logical properties that preferences possess have major effects also on rational choice theory, which has a carryover effect on all mode ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Utility Theory
As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill. The term has been adapted and reapplied within neoclassical economics, which dominates modern economic theory, as a utility function that represents a single consumer's preference ordering over a choice set but is not comparable across consumers. This concept of utility is personal and based on choice rather than on pleasure received, and so is specified more rigorously than the original concept but makes it less useful (and controversial) for ethical decisions. Utility function Consider a set of alternatives among which a person can make a preference ordering. The utility obtained from these alternatives is an unknown function of the utilities obtained from each alternative, not the sum of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Expected Utility Theory
The expected utility hypothesis is a popular concept in economics that serves as a reference guide for decisions when the payoff is uncertain. The theory recommends which option rational individuals should choose in a complex situation, based on their risk appetite and preferences. The expected utility hypothesis states an agent chooses between risky prospects by comparing expected utility values (i.e. the weighted sum of adding the respective utility values of payoffs multiplied by their probabilities). The summarised formula for expected utility is U(p)=\sum u(x_k)p_k where p_k is the probability that outcome indexed by k with payoff x_k is realized, and function ''u'' expresses the utility of each respective payoff. On a graph, the curvature of u will explain the agent's risk attitude. For example, if an agent derives 0 utils from 0 apples, 2 utils from one apple, and 3 utils from two apples, their expected utility for a 50–50 gamble between zero apples and two is 0.5''u''(0 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Neoclassical Economics
Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a good or service is determined through a hypothetical maximization of utility by income-constrained individuals and of profits by firms facing production costs and employing available information and factors of production. This approach has often been justified by appealing to rational choice theory, a theory that has come under considerable question in recent years. Neoclassical economics historically dominated macroeconomics and, together with Keynesian economics, formed the neoclassical synthesis which dominated mainstream economics as "neo-Keynesian economics" from the 1950s to the 1970s.Clark, B. (1998). ''Principles of political economy: A comparative approach''. Westport, Connecticut: Praeger. Nadeau, R. L. (2003). ''The Wealth of Na ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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