Title of article :
Quantum model for the price dynamics: The problem of smoothness
of trajectories
Author/Authors :
Olga Choustova، نويسنده ,
Issue Information :
دوهفته نامه با شماره پیاپی سال 2008
Abstract :
We apply methods of quantum mechanics to mathematical modelling of price dynamics in
a financial market. We propose to describe behavioral financial factors (e.g., expectations
of traders) by using the pilot wave (Bohmian) model of quantum mechanics. Our model
is a quantum-like model of the financial market, cf. with works of W. Segal, I.E. Segal,
E. Haven. In this paper we study the problem of smoothness of price-trajectories in the
Bohmian financial model. We show that even the smooth evolution of the financial pilot
wave ψ(t, x) (representing expectations of traders) can induce jumps of prices of shares.
Journal title :
Journal of Mathematical Analysis and Applications
Journal title :
Journal of Mathematical Analysis and Applications