## Toward Quantum Behavioral Fiances: Bohmian Approach (2006)

### BibTeX

@MISC{Choustova06towardquantum,

author = {Olga Choustova},

title = {Toward Quantum Behavioral Fiances: Bohmian Approach},

year = {2006}

}

### OpenURL

### Abstract

We apply methods of quantum mechanics for mathematical modeling of price dynamics at the financial market. We propose to describe behavioral financial factors by using the pilot wave (Bohmian) model of quantum mechanics. The theory of financial behavioral waves takes into account the market psychology. The real trajectories of prices are determined (through the financial analogue of the second Newton law) by two financial potentials: classical-like V (q) (”hard ” market conditions) and quantum-like U(q) (behavioral market conditions).

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Citation Context ...Corresponding continuous time models are based on stochastic processes (this approach was initiated in the thesis of L. Bachelier [1] in 1890), see, e.g., the book of R. N. Mantegna and H. E. Stanley =-=[2]-=- for historical and mathematical details. However, empirical studies have demonstrated that prices do not completely follow random walk. Low serial correlations (around 0.05) exist in the short term; ... |

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Citation Context ..., see also [4], [5], [6]. The complete version of the present paper was submitted as the quant-preprint [7]. This paper is fundamentally based on investigations of D. Bohm, B. Hiley, and P. Pylkkänen =-=[14]-=-, [15] on the active information interpretation of Bohmian mechanics [16], [17] and its applications to cognitive sciences, see also Khrennikov [18], [19]. There were performed numerous investigations... |

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Citation Context ...ld be even more natural to consider the Gaussian distribution of price changes. So it is useful to the study momentum representation for the pilot wave theory which was recently developed by B. Hiley =-=[20]-=-. Instead of financial waves on the configuration financial space Q we can consider financial waves ψ : P → C on the momentum space. We recall that the momentum p = mv, where v, the velocity, describe... |

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Citation Context ...(q), our model can be considered as a special psycho-financial model. This paper can be also considered as a contribution into applications of quantum mechanics outside microworld, see also [4], [5], =-=[6]-=-. The complete version of the present paper was submitted as the quant-preprint [7]. This paper is fundamentally based on investigations of D. Bohm, B. Hiley, and P. Pylkkänen [14], [15] on the active... |

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Citation Context ...ation. We shall use the same equation to find the evolution of the financial pilot wave. We have only to make one remark, namely, on the role of the constant h in Schrödinger’s equation, cf. E. Haven =-=[9]-=-, [10], [12]. In quantum mechanics (which deals with microscopic objects) h is the Planck constant. This constant is assumed to play the fundamental role in all quantum considerations. However, origin... |

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Citation Context ...ial wave ψ(q), our model can be considered as a special psycho-financial model. This paper can be also considered as a contribution into applications of quantum mechanics outside microworld, see also =-=[4]-=-, [5], [6]. The complete version of the present paper was submitted as the quant-preprint [7]. This paper is fundamentally based on investigations of D. Bohm, B. Hiley, and P. Pylkkänen [14], [15] on ... |