Information or Quantum Economics

Raymond J. Hawkins, B. Roy Frieden

The authors show how the formal framework of quantum mechanics arises in economics generally and in financial economics in particular as a natural consequence of an information-theoretic approach to these fields. Specifically, extremizing Fisher information, subject to the constraint that the associated probability density reproduces observed economic phenomena, results in Schrödinger-like equations. The authors illustrate the utility of this approach with examples from financial economics. As an emergent consequence of information theory, the use of quantum formalism in economics can be seen as a powerful approach for understanding complex dynamics grounded in the probabilistic view of economics advocated by Knight and Keynes. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Christian Aspalter

Tuti Dharmawati, Loso Judijanto, Endang Fatmawati +3 more

INTRODUCTION: Quantum computing technology has become a center of attention in various scientific disciplines, including economic analysis. The adoption of quantum computing in economic analysis offers tremendous potential to improve the processing of complex economic data and provide deep insights. However, the use of quantum technology in the context of distributed information systems also raises several challenges, including data security and the limitations of quantum technology. OBJECTIVE: This research aims to investigate the implications of adopting quantum computing in economic analysis, with a focus on distributed information systems. METHODS: This research was carried out using a descriptive qualitative approach, with data derived from the results of relevant research and previous studies. The collected data will be processed and analyzed to gain a deeper understanding of the adoption of quantum computing in economic analysis in distributed information systems. RESULTS: This research then finds that the adoption of quantum computing in economic analysis has the potential to increase efficiency, accuracy, and depth of economic insight. However, limitations of current quantum technologies, including quantum errors, limited scale of operations, and data security issues, limit their applications. In the long term, research and development will be key to overcoming these obstacles and maximizing the potential of this technology in economic analysis. CONCLUSION: The long-term implications include increased economic competitiveness and significant changes in the way economic decision-making is carried out, assuming that ethical and regulatory issues are also carefully considered.

Jan Kåhre

Raymond J. Hawkins, B. Roy Frieden

We show how a quantum formulation of financial economics can be derived from asymmetries with respect to Fisher information. Our approach leverages statistical derivations of quantum mechanics which provide a natural basis for interpreting quantum formulations of social sciences generally and of economics in particular. We illustrate the utility of this approach by deriving arbitrage-free derivative-security dynamics.