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Quantum modeling of nonlinear dynamics of stock prices: Bohmian approach

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Abstract

We use quantum mechanical methods to model the price dynamics in the financial market mathematically. We propose describing behavioral financial factors using the pilot-wave (Bohmian) model of quantum mechanics. The real price trajectories are determined (via the financial analogue of the second Newton law) by two financial potentials: the classical-like potential V (q) (“hard” market conditions) and the quantumlike potential U(q) (behavioral market conditions).

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Authors and Affiliations

  1. International Center for Mathematical Modeling in Physics and Cognitive Sciences, MSI, University of Växjö, S-35195, Sweden

    O. Choustova

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  1. O. Choustova
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Correspondence to O. Choustova.

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Translated from Teoreticheskaya i Matematicheskaya Fizika, Vol. 152, No. 2, pp. 405–415, August, 2007.

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Choustova, O. Quantum modeling of nonlinear dynamics of stock prices: Bohmian approach. Theor Math Phys 152, 1213–1222 (2007). https://doi.org/10.1007/s11232-007-0104-2

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