The use of action functionals within the quantum-like paradigm

Abstract

Arbitrage is a key concept in the theory of asset pricing and it plays a crucial role in …nancial decision making. The concept of the curvature of so called '…bre bundles' can be used to de…ne arbitrage. The concept of 'action'can play an important role in the de…nition of arbitrage. In this paper we connect the probabilities emerging from a (non) zero linear action with so called risk neutral probabilities. The paper also shows how arbitrage/non arbitrage can be well de…ned within a quantum-like paradigm. We also discuss brie ‡y the behavioral dimension of arbitrage and its coupling with the (ir)rationality of traders (and market participants) , as well as classical and quantum-like viewpoints on (ir)rationality.

Comparison of The Possibilities of Application of Spectrum and Gaming Theories in Modelling Market Economy Negotiations

“…In summary, the diagonal utility matrix means that perspectives are evaluated by projecting the results of an underlying object with known benefits [17][18][19][20][21][22]. In practice, the person will appreciate the perspective by designing on subjective frameworks that will not fit perfectly with the classical version and will give negative weights to undesirable outcomes [23][24][25]. This method transfers non-zero non-diagonal data to the U utility matrix, which has the advantage of simplicity, of course U has two negative effects: objective and subjective weights.…”