Pseudo Hermitian formulation of Black-Scholes equation

We show that the non Hermitian Black-Scholes Hamiltonian and its various generalizations are eta-pseudo Hermitian. The metric operator eta is explicitly constructed for this class of Hamitonians. It is also shown that the effective Black-Scholes Hamiltonian and its partner form a pseudo supersymmetric system

Risk, ambiguity and quantum decision theory

In the present article we use the quantum formalism to describe the effects of risk and ambiguity in decision theory. The main idea is that the probabilities in the classic theory of expected utility are estimated probabilities, and thus do not follow the classic laws of probability theory. In particular, we show that it is possible to use consistently the classic expected utility formula, where the probability associated to the events are computed with the equation of quantum interference. Thus we show that the correct utility of a lottery can be simply computed by adding to the classic expected utility a new corrective term, the uncertainty utility, directly connected with the quantum interference term.Comment: 1 figur

An operatorial approach to stock markets

We propose and discuss some toy models of stock markets using the same operatorial approach adopted in quantum mechanics. Our models are suggested by the discrete nature of the number of shares and of the cash which are exchanged in a real market, and by the existence of conserved quantities, like the total number of shares or some linear combination of cash and shares. The same framework as the one used in the description of a gas of interacting bosons is adopted

"Potentialities or Possibilities": Towards Quantum Information Science?

The use of quantum concepts and formalisms in the information sciences is assessed through an analysis of published literature. Five categories are identified: use of loose analogies and metaphors between concepts in quantum physics and library/information science; use of quantum concepts and formalisms in information retrieval; use of quantum concepts and formalisms in studying meaning and concepts; quantum social science, in areas adjacent to information science; and the qualitative application of quantum concepts in the information disciplines. Quantum issues have led to demonstrable progress in information retrieval and semantic modelling, with less clear-cut progress elsewhere. Whether there may be a future “quantum turn” in the information sciences is debated, the implications of such a turn are considered, and a research agenda outlined