International Journal of Mathematics and Mathematical Sciences
Volume 2012 (2012), Article ID 470293, 11 pages
http://dx.doi.org/10.1155/2012/470293
Research Article

Asymmetric Information and Quantization in Financial Economics

College of Optical Sciences, The University of Arizona, Tucson, AZ 85721, USA

Received 29 June 2012; Accepted 27 September 2012

Academic Editor: Bernard Soffer

Copyright © 2012 Raymond J. Hawkins and B. Roy Frieden. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We show how a quantum formulation of financial economics can be derived from asymmetries with respect to Fisher information. Our approach leverages statistical derivations of quantum mechanics which provide a natural basis for interpreting quantum formulations of social sciences generally and of economics in particular. We illustrate the utility of this approach by deriving arbitrage-free derivative-security dynamics.