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Symmetry and financial Markets

Author

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  • Jørgen Vitting Andersen

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique)

  • Andrzej Nowak

    (Department of Psychology, Warsaw university - UW - University of Warsaw)

Abstract

It is hard to overstate the importance that the concept of symmetry has had in every field of physics, a fact alluded to by the Nobel Prize winner P.W. Anderson, who once wrote that "physics is the study of symmetry". Whereas the idea of symmetry is widely used in science in general, very few (if not almost no) applications has found its way into the field of finance. Still, the phenomenon appears relevant in terms of for example the symmetry of strategies that can happen in the decision making to buy or sell financial shares. Game theory is therefore one obvious avenue where to look for symmetry, but as will be shown, also technical analysis and long term economic growth could be phenomena which show the hallmark of a symmetry.

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  • Jørgen Vitting Andersen & Andrzej Nowak, 2020. "Symmetry and financial Markets," Post-Print halshs-03048686, HAL.
    • Handle: RePEc:hal:journl:halshs-03048686
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03048686
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    References listed on IDEAS

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    More about this item

    Keywords

    Agent-based modelling; Game theory; Ginzburg-Landau theory; financial symmetry;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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