2006-2007 Colloquium Series

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NAU Physical Sciences (Bldg 19, Rm 321), Monday, 2 April 2007, 4:00 PM
(Refreshments at 3:45pm)

Quantum Physics and Financial Economics:
an Overview of Possible Connections

Dr. Emmanuel Haven
University of Essex
Dept. of Accounting, Finance and Management

Abstract

In this talk we provide an overview of how quantum physical concepts could be possibly used in a fruitful way in various financial economics applications. First, we provide for a literature overview of work performed in the area connecting quantum physics with economics in general. Second, we discuss how Bohmian mechanics, which is a particular interpretation of quantum physics, could be used in financial economics. In particular, we define an information function which is interpreted as a pilot wave. We discuss the use of the quantum potential in a financial economics context. We consider several applications in the areas of i) financial option pricing; ii) financial arbitrage. The talk is self contained. Hence, any financial economics concepts will be duly explained.

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