Theory of Quantum Space-Time

A generalised equivalence principle is put forward according to which space-time symmetries and internal quantum symmetries are indistinguishable before symmetry breaking. Based on this principle, a higher-dimensional extension of Minkowski space is proposed and its properties examined. In this scheme the structure of space-time is intrinsically quantum mechanical. It is shown that the causal geometry of such a quantum space-time possesses a rich hierarchical structure. The natural extension of the Poincare group to quantum space-time is investigated. In particular, we prove that the symmetry group of a quantum space-time is generated in general by a system of irreducible Killing tensors. When the symmetries of a quantum space-time are spontaneously broken, then the points of the quantum space-time can be interpreted as space-time valued operators. The generic point of a quantum space-time in the broken symmetry phase thus becomes a Minkowski space-time valued operator. Classical space-time emerges as a map from quantum space-time to Minkowski space. It is shown that the general such map satisfying appropriate causality-preserving conditions ensuring linearity and Poincare invariance is necessarily a density matrix

Quantum states and space-time causality

Space-time symmetries and internal quantum symmetries can be placed on equal footing in a hyperspin geometry. Four-dimensional classical space-time emerges as a result of a decoherence that disentangles the quantum and the space-time degrees of freedom. A map from the quantum space-time to classical space-time that preserves the causality relations of space-time events is necessarily a density matrix.Comment: 9 pages, to appear in the Proceedings of the 2nd International Symposium on Information Geometry and its Application

Geometry of Thermodynamic States

A novel geometric formalism for statistical estimation is applied here to the canonical distribution of classical statistical mechanics. In this scheme thermodynamic states, or equivalently, statistical mechanical states, can be characterised concisely in terms of the geometry of a submanifold ${\cal M}$ of the unit sphere ${\cal S}$ in a real Hilbert space ${\cal H}$. The measurement of a thermodynamic variable then corresponds to the reduction of a state vector in ${\cal H}$ to an eigenstate, where the transition probability is the Boltzmann weight. We derive a set of uncertainty relations for conjugate thermodynamic variables in the equilibrium thermodynamic states. These follow as a consequence of a striking thermodynamic analogue of the Anandan-Aharonov relations in quantum mechanics. As a result we are able to provide a resolution to the controversy surrounding the status of `temperature fluctuations' in the canonical ensemble. By consideration of the curvature of the thermodynamic trajectory in its state space we are then able to derive a series of higher order variance bounds, which we calculate explicitly to second order.Comment: 7 pages, RevTe

Credit Risk, Market Sentiment and Randomly-Timed Default

We propose a model for the credit markets in which the random default times of bonds are assumed to be given as functions of one or more independent "market factors". Market participants are assumed to have partial information about each of the market factors, represented by the values of a set of market factor information processes. The market filtration is taken to be generated jointly by the various information processes and by the default indicator processes of the various bonds. The value of a discount bond is obtained by taking the discounted expectation of the value of the default indicator function at the maturity of the bond, conditional on the information provided by the market filtration. Explicit expressions are derived for the bond price processes and the associated default hazard rates. The latter are not given a priori as part of the model but rather are deduced and shown to be functions of the values of the information processes. Thus the "perceived" hazard rates, based on the available information, determine bond prices, and as perceptions change so do the prices. In conclusion, explicit expressions are derived for options on discount bonds, the values of which also fluctuate in line with the vicissitudes of market sentiment.Comment: To appear in: Stochastic Analysis in 2010, Edited by D. Crisan, Springer Verla

Relaxation of quantum states under energy perturbations

The energy-based stochastic extension of the Schrodinger equation is perhaps the simplest mathematically rigourous and physically plausible model for the reduction of the wave function. In this article we apply a new simulation methodology for the stochastic framework to analyse formulae for the dynamics of a particle confined to a square-well potential. We consider the situation when the width of the well is expanded instantaneously. Through this example we are able to illustrate in detail how a quantum system responds to an energy perturbation, and the mechanism, according to the stochastic evolutionary law, by which the system relaxes spontaneously into one of the stable eigenstates of the Hamiltonian. We examine in particular how the expectation value of the Hamiltonian and the probability distribution for the position of the particle change in time. An analytic expression for the typical timescale of relaxation is derived. We also consider the small perturbation limit, and discuss the relation between the stochastic framework and the quantum adiabatic theorem