Quantum Financial Economics of Games of Strategy and Financial Decisions

Abstract

"A quantum financial approach to finite games of strategy is addressed, with an extension of Nash's theorem to the quantum financial setting, allowing for an entanglement of games of strategy with two-period financial allocation problems that are expressed in terms of: the consumption plans' optimization problem in pure exchange economies and the finite-state securities market optimization problem, thus addressing, within the financial setting, the interplay between companies' business games and financial agents' behavior.

A complete set of quantum Arrow-Debreu prices, resulting from the game of strategy's quantum Nash equilibrium, is shown to hold, even in the absence of securities' market completeness, such that Pareto optimal results are obtained without having to assume the completeness condition that the rank of the securities' payoff matrix is equal to the number of alternative lottery states."

Ref: arXiv:1202.2080v1 [q-fin.GN]

Quantum Financial Economics - Risk and Returns

Abstract:

"Financial volatility risk is addressed through a multiple round evolutionary quantum game equilibrium leading to Multifractal Self-Organized Criticality (MSOC) in the financial returns and in the risk dynamics. The model is simulated and the results are compared with financial volatility data."

Ref: arXiv:1107.2562v1 [q-fin.RM]

Chaos in Binary Category Computation

Abstract:

"Category computation theory deals with a web-based systemic processing that underlies the morphic webs, which constitute the basis of categorial logical calculus. It is proven that, for these structures, algorithmically incompressible binary patterns can be morphically compressed, with respect to the local connectivities, in a binary morphic program. From the local connectivites, there emerges a global morphic connection that can be characterized by a low length binary string, leading to the identification of chaotic categorial dynamics, underlying the algorithmically random pattern. The work focuses on infinite binary chains of C2, which is a category that implements an X-OR-based categorial logical calculus."

 Ref: arXiv:1011.4686v1 [math.CT]