Quantum model for the price dynamics: The problem of smoothness of trajectories
A new approach to the modeling of financial market is considered, that is not based on the assumption that investors act rationally and without bias. Instead, information about financial market is described by an information field \(\psi(t,q)\) -- financial wave (this model of quantum mechanics is named Bohmian model). Dynamics is described by the trajectory in the configuration price space and is given by Schrödinger equation on the space of prices or shares. It is shown that even continuous dynamics of the financial wave can produce discontinuous quantum force, so, can induce jumps of prices of shares. Existence theorems are proved for equations with discontinuous classical and quantum forces.
scientific article; zbMATH DE number 5303214
scientific article