• 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
  • Pages
    9
  • From page
    296
  • To page
    304
  • 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
  • Serial Year
    2008
  • Journal title
    Journal of Mathematical Analysis and Applications
  • Record number

    937383