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Quantum economics applies mathematical methods and ideas from quantum physics to the field of economics.[1] It is motivated by the claim that economic processes such as financial transactions can be appropriately modeled using the quantum formalism. It draws on techniques from the related areas of quantum finance and quantum cognition, and is a sub-field of quantum social science.

History

Economists including Paul Samuelson[2] and Bernard Schmitt (whose "quantum macroeconomics" treated production as an instantaneous emission[3]) have found inspiration in quantum theory.

In his 1978 paper Quantum Economics, Pakistani mathematician Asghar Qadir argued that the formalism of quantum mechanics is the best mathematical framework for modeling situations where "consumer behavior depends on infinitely many factors and that the consumer is not aware of any preference until the matter is brought up."[4] He proposed that, like particles in quantum mechanics, "the individual as an entity ... can be thought of as a point in a Hilbert space." During the 1990s, researchers such as economist Martin Shubik, physicist Martin Schaden and social scientist Emmanuel Haven were beginning to use the quantum formalism to model the uncertainty of stock markets.[5][6][7]

In a 2016 paper[8] and book[9][10] (the latter co-authored with journalist Roman Chlupatý), the mathematician David Orrell proposed a quantum theory of money and value, which states that money has dualistic, quantum properties because of the way that it merges the exact concept of number with the fuzzy concept of value, and the use of money leads to mental and financial entanglement which can be modeled using quantum methods. In his 2018 book Quantum Economics: The New Science of Money[11][12] and other works [13][14] he described a quantum economics which combined this view of money with the insights of quantum finance and quantum social science. In a 2019 article for the Bretton Woods Committee, Andrew Sheng wrote that “A quantum paradigm of finance and the economy is slowly emerging, and its nonlinear, complex nature may help the design of a future global economy and financial architecture ... Financial assets and virtual liabilities have quantum characteristics of entanglement with each other that are not yet fully understood."[15]

The first academic journal dedicated to the area was Quantum Economics and Finance which began publication in 2024.[1][16]

Description

Quantum economics also stresses the importance of financial transactions and in particular the role of money as an active force in the economy, for example in the way that it entangles debtors and creditors through loans.[9] Quantum economics can therefore be viewed as an alternative to neoclassical economics which begins from a different set of assumptions.

References

  1. ^ a b Orrell, David; Haven, Emmanuel; Hawkins, Raymond (2024). "What is Quantum Finance and Economics?". Quantum Finance and Economics. 1 (1): 1.
  2. ^ Samuelson, Paul (1979). "A quantum theory model of economics: Is the co-ordinating entrepreneur just worth his profit?". The collected scientific papers of Paul A. Samuelson. Vol. 4. Cambridge, Mass.: MIT Press. pp. 104–110.
  3. ^ "Manifesto". December 2011. Retrieved 29 March 2019.
  4. ^ Qadir, Asghar (1978). "Quantum Economics". Pakistan Economic and Social Review. 16 (3/4): 117–126.
  5. ^ Shubik, M. (1999). "Quantum economics, uncertainty and the optimal grid size". Economics Letters. 64 (3): 277–278. doi:10.1016/S0165-1765(99)00095-6.
  6. ^ Schaden, Martin (2002). "Quantum Finance". Physica A: Statistical Mechanics and Its Applications. 316 (1–4). Physica A: 511–538. arXiv:physics/0203006. Bibcode:2002PhyA..316..511S. doi:10.1016/S0378-4371(02)01200-1. S2CID 204898656.
  7. ^ Haven, Emmanuel (2002). "A discussion on embedding the Black–Scholes option pricing model in a quantum physics setting". Physica A: Statistical Mechanics and Its Applications. 304 (3–4). Physica A: 507–524. Bibcode:2002PhyA..304..507H. doi:10.1016/S0378-4371(01)00568-4.
  8. ^ Orrell, David (2016). "A Quantum Theory of Money and Value". Economic Thought. 5 (2): 19–28.
  9. ^ a b Orrell, David; Chlupatý, Roman (2016). The Evolution of Money. Columbia University Press. pp. 171–175. ISBN 978-0231173728.
  10. ^ Teese, Colin (11 February 2017). "Money and quantum physics". News Weekly.
  11. ^ Orrell, David (2018). Quantum Economics: The New Science of Money. Icon Books. ISBN 978-1785783999.
  12. ^ Clegg, Brian (5 July 2018). "Quantum Economics - David Orrell". Retrieved 17 September 2018.
  13. ^ Orrell, David (2020). Quantum Economics and Finance: An Applied Mathematics Introduction. Panda Ohana. ISBN 978-1916081611.
  14. ^ Orrell, David (2020). "A quantum model of supply and demand". Physica A: Statistical Mechanics and Its Applications. 539: 122928. Bibcode:2020PhyA..53922928O. doi:10.1016/j.physa.2019.122928.
  15. ^ Sheng, Andrew (July 2019). "A New Bretton Woods Vision for a Global Green New Deal". Revitalizing the Spirit of Bretton Woods: 50 Perspectives on the Future of the Global Economic System. Bretton Woods Committee. pp. 360–367.
  16. ^ White, Susan (23 November 2023). "Answering the unanswerable". Retrieved 15 April 2023.
source: https://en.wikipedia.org/w/index.php?title=Quantum_economics&oldid=1219165528

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