On Certain Analogies Between the Laws of Quantum Mechanics and Rules of an English Auction It is a self-evident truth that nowadays a growing number of economic phenomena is described by means of physics methods. The most frequent theories derived from physics and applied to economy are: (1) the universal gravitation law and (2) the first as well as the second law of thermodynamics. The methods of static physics are applicable also to the theory of financial markets. In this case it is assumed that the financial market is composed of single participants interacting as a system of particles. Such approach is associated with a model of financial market otherwise known as a minority game. It is postulated that the process of securities and money allocation is performed on the basis of prices fluctuation, where - if a vast majority of investors tend to purchase goods or services - the sale constitutes a more profitable option, and vice versa. The players who end up on minority side win. At the end of the XX century the economy commenced to apply the laws of quantum mechanics. These laws proved to be useful, in particular when attempting to generalize game theory, which resulted in quantum games. The aim of the paper is to compare the rules and auction mechanisms with selected laws of quantum mechanics. This paper aims also to introduce the basic concepts of quantum mechanics to the process of economic phenomena modeling. Quantum mechanics is a theory describing a behaviour of microscopic objects and is grounded on the principle of wave-particle duality. It is assumed that quantum-scale objects at the same time exhibit both wave-like and particle-like properties. The key role in quantum mechanics is played by: (1) the Schrödinger equation describing the probability amplitude for the particle to be found at a given position and at a given time, as well as (2) the Heisenberg uncertainty principle stating that a certain pair of physical properties may not be simultaneously measured to arbitrarily high precision.
On Certain Analogies Between the Laws of Quantum Mechanics and Rules of an English Auction It is a self-evident truth that nowadays a growing number of economic phenomena is described by means of physics methods. The most frequent theories derived from physics and applied to economy are: (1) the universal gravitation law and (2) the first as well as the second law of thermodynamics. The methods of static physics are applicable also to the theory of financial markets. In this case it is assumed that the financial market is composed of single participants interacting as a system of particles. Such approach is associated with a model of financial market otherwise known as a minority game. It is postulated that the process of securities and money allocation is performed on the basis of prices fluctuation, where - if a vast majority of investors tend to purchase goods or services - the sale constitutes a more profitable option, and vice versa. The players who end up on minority side win. At the end of the XX century the economy commenced to apply the laws of quantum mechanics. These laws proved to be useful, in particular when attempting to generalize game theory, which resulted in quantum games. The aim of the paper is to compare the rules and auction mechanisms with selected laws of quantum mechanics. This paper aims also to introduce the basic concepts of quantum mechanics to the process of economic phenomena modeling. Quantum mechanics is a theory describing a behaviour of microscopic objects and is grounded on the principle of wave-particle duality. It is assumed that quantum-scale objects at the same time exhibit both wave-like and particle-like properties. The key role in quantum mechanics is played by: (1) the Schrödinger equation describing the probability amplitude for the particle to be found at a given position and at a given time, as well as (2) the Heisenberg uncertainty principle stating that a certain pair of physical properties may not be simultaneously measured to arbitrarily high precision.
Classical and Quantum Physics in Selected Economic Models A growing number of economic phenomena are nowadays described with methods known in physics. The most frequently applied physical theories by economists are: (1) the universal gravitation law and (2) the first and second law of thermodynamics. Physical principles can also be applied to the theory of financial markets. Financial markets are composed of individual participants who may be seen to interact as particles in a physical system. This approach proposes a financial market model known as a minority game model in which securities and money are allocated on the basis of price fluctuations, and where selling is best option when the vast majority of investors tend to purchase goods or services, and vice versa. The players who end up being on the minority side win. The above applications of physical methods in economics are deeply rooted in classical physics. However, this paper aims to introduce the basic concepts of quantum mechanics to the process of economic phenomena modelling. Quantum mechanics is a theory describing the behaviour of microscopic objects and is grounded on the principle of wave-particle duality. It is assumed that quantum-scale objects at the same time exhibit both wave-like and particle-like properties. The key role in quantum mechanics is played by: (1) the Schrödinger equation describing the probability amplitude for the particle to be found in a given position and at a given time, and as (2) the Heisenberg uncertainty principle stating that certain pairs of physical properties cannot be economic applications of the Schrödinger equation as well as the Heisenberg uncertainty principle. We also try to describe the English auction by means the quantum mechanics methods.
The paper undertakes to analyse the changes in the economic agent which it is subject to when described from the perspective of different worldviews. The mechanistic, electrodynamic and relativistic quantum worldviews suggest different interpretations of the properties of the object, hence describe economic objects different in nature. Reliance on physicalist methods makes it possible to reveal an economic agent displaying solidarity and to outline its preconditions. The goal of this research is reconsidering the object of economics and revealing its new properties. The first task is to describe the economic agent in mechanistic terms, the second task is to add to it the properties that are drawn from quantum mechanics. The paper looks for analogies and metaphors of such phenomena as tunnel effect and duality of microparticles. It also suggests a system of institutional organization for regulating demand for different categories of goods. The theory of institutions is interpreted through the analogies of the electrodynamic worldview. The principles of behavioral economics are presented in terms of the quantum-relative worldview. The article reveals a new production factor that allows the agent to exchange the labour performed in the system of informal institutions for its analogies in the formal system. It is inferred that the peculiarities of behaviour are formed by institutions and divide agents of demand into groups. The metaphors of quantum-field experiments are revealed to explain the mechanisms of influence on these groups depending on their preferences. The paper explores the agent of demand — the purchaser — consisting of multiple households. Economic analogies are searched in the process of interpreting the law of demand and supply.
Abstract Since Adam Smith, economics has erected a grand edifice upon the foundations of rational agents, equilibrium analysis, and linear causality; however, the 2008 global financial crisis, the European sovereign debt crisis, and the COVID-19 pandemic have successively revealed its fundamental limitations when confronted with complex economic phenomena: bubbles that ought not to have existed, crises unforeseen by equilibrium models, non-linear ruptures brought about by technological revolutions, and self-fulfilling expectations—all of which call for a richer theoretical language. This book serves as the foundational introduction to the "Quantum Economics Textbook Series," as well as the first gateway into this entire series. It introduces the methodological framework, mathematical apparatus, and philosophical insights of quantum mechanics to economic analysis, grounding its approach in the core proposition of a practical ontology—that human economic practice itself possesses quantum attributes such as superposition, entanglement, constructibility, uncertainty, and emergence—thereby reconstructing the economic world as a quantum process of superposition and evolution. Six core concepts—superposition, entanglement, measurement collapse, the uncertainty principle, quantum transitions, and emergence—run throughout the work. Quantum economics does not represent a simple negation of classical theory; rather, it constitutes a dialectical sublation: under the classical limit—where decoherence is complete, the measurement basis is fixed, and entanglement vanishes—quantum theory precisely reduces to classical theory. This book comprises five parts and thirty chapters: Part I establishes the paradigm shift and theoretical framework, covering critiques of Newton's worldview, the quantum worldview, a foundational conceptual framework, mathematical foundations, and research methodologies; Part II reconstructs quantum microeconomic theory, encompassing consumers, producers, pricing, markets, the wave-particle duality of markets, quantum games, and welfare economics; Part III builds quantum macroeconomic theory, addressing national income accounting, money, inflation, economic cycles, policy, and open economies; Part IV explores quantum finance and market dynamics, including asset pricing, portfolio management, market sentiment, risk management, and trading theory; Part V extends the scope to organizations, innovation, institutions, development, economic ethics, and the digital economy, while offering insights into the future of this discipline. This volume is intended for undergraduate and graduate students, as well as researchers in economics and related fields, and serves as the essential first volume in the quantum economics series.
On the basis of the observational fact that a wave packet, describing the localized ensemble of micro-objects, spreads according to the diffusion law, the quantum equivalence principle is formulated, that the motion of the ensemble of quantum objects is equivalent to the diffusion of the ensemble of classical objects in a fluctuating background field (physical vacuum).The observations also confirm the validity of the principle of relativity for quantum phenomena, formulating as the principle of constancy of quantum fluctuations, that these fluctuations and the describing them diffusion occur identically in all inertial frames.It is shown that these two physical principles, together with the principles of mechanics, lead to the diffusion quantum mechanics (DQM), containing the formalism of quantum mechanics as a particular case.In DKM the relation between the velocity of the diffusion flow and the probability density is given by the diffusion law (Fick's law), while the invariance of diffusion leads to its conservatism (diffusion without friction) and the constancy of the diffusion coefficient, fixed from correspondence with quantum mechanics.In DQM the Hamiltonian includes the kinetic energies of the drift, diffusion flux, and interaction potentials, while the probability density and the drift action function of particles S form a canonical pair.The canonical equations for them then lead to the continuity equation and to the Hamilton-Jacobi-Madelung equation.The probability density in them enters nonlinearly, but in the case of a canonical transformation to the complex amplitude of the probabilities, they are linearized and pass into the Schrödinger equation.As a result, the amplitudes of probabilities add up for the alternatives, i.e. their superposition takes place.DQM based on physical principles is a more general theory than quantum mechanics, since along with classical devices and particles it introduces a third participant of all processes -the background field, which is the source of quantum fluctuations of classical particles.In DQM, the quantum potential is the potential energy associated with localization, quantum statistics appears in the system of many classical particles in the fluctuating background, and composite particles of small size can have a small mass.DQM also explains the existence of rest energy, the constancy of the light velocity (velocity of quantum fluctuations) and predicts the existence and properties of gravitation as thermal diffusion in the inhomogeneous background field.
We reason about possible future development of quantum game theory and its impact on information processing and the emerging information society. Two of the authors have recently proposed a quantum description of financial market in terms of quantum game theory. These "new games" cannot by themselves create extraordinary profits or multiplication of goods, but they may cause the dynamism of transaction which would result in more effective markets and capital flow into hands of the most efficient traders. We focus upon the problem of universality of measurement in quantum market games. Quantum-like approach to market description proves to be an important theoretical tool for investigation of computability problems in economics or game theory even if never implemented in real markets.
Aiming at the quantum mechanics wave function description probability feature, statistical interpretation, randomicity, uncertainty, nonlocality and agnosticism etc fundamental principles and concepts, based on the mass-space interaction, mass-space space-time view, microscopic mass-energy systems correlating with space-time model etc principles and theories, and the quantum entanglement particle experiments etc facts, present the matter-ordering-energy conservation laws and the Dong Pei innovating group interpretation of quantum mechanics. Simultaneously indicate: In the universe there exists the ordering- and disordering-energy matter, together known as matter. Existing the absolute space and absolute time. The absolute space-time is continuous. Matter and the absolute space-time together create and compose the objective world. The objective world is a harmonious and unified whole. Physical laws are completely unified. The objective world and matter are all finite. Matter exists, evolves and moves in the absolute space-time. Interactions are the most essential and most root basic attribute of matter. The interaction among matter is the mass-space interaction. The mass-space interaction is continuous and stable, is not random and intermittent. Macroscopic and microscopic regions all observe the identical physical laws. Elementary particles and they compose the microscopic mass-energy systems are all the ordering-energy matter, their mass-energy space-time is a interdependent whole, their feature, state, structure and motion laws are all entirely determined by the mass-space interaction, correspond with the determinism and causality, the motion state and feature, motion orbitals, position and speed of particles in the absolute space-time are all absolutely determined and could be measured exactly, their quantum states could be approximately described by the wave function of quantum mechanics. The wave functions are the simplified mathematical function approximate expression of quantum system states of adopted interaction, can be used to calculate the correlative physical quantities. The wave functions could approximately describe the state of the mass-energy space-time whole of a microscopic mass-energy system with the mass-space interaction acting and continuously moving. An eigenstate just is the state making the system energy minimum and in rather stable existence. Scientific theories are the abstract simplified approximate expression for the essential of natural phenomena. Physical theory is the abstract simplified approximate representation for the matter structure and its motion laws. Whereas the mathematical formulation then is the further simplified approximate representation for physical contents. All of theories, include quantum mechanics and relativity, only when the assumed approximate condition is satisfied, just are the applied correct scientific theory, could describe the objective world good enough but not exactly. Develop scientific theory, correctly cognize and reasonably interpret the objective world, without the end.