IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/122378.html
   My bibliography  Save this paper

A Quantum-Inspired Economic Equilibrium Model: Incorporating Uncertainty in Price and Money Flow Dynamics

Author

Listed:
  • HARIT, ADITYA

Abstract

This paper presents a quantum-inspired economic equilibrium model that incorporates fundamental uncertainty in market dynamics. Drawing upon the analogy between quantum mechanics and economic behavior, the model defines an uncertainty constant, σ, which limits the precision with which both price and money flow can be simultaneously predicted. The model investigates the dynamics of price and money f low as they asymptotically approach equilibrium, constrained by the uncertainty principle ∆P · ∆M ≥ σ. Solutions for price and money f low are derived, and the behavior of the system as it reaches equilibrium is analyzed, offering a novel perspective on how markets behave in the presence of irreducible uncertainty.

Suggested Citation

  • Harit, Aditya, 2024. "A Quantum-Inspired Economic Equilibrium Model: Incorporating Uncertainty in Price and Money Flow Dynamics," MPRA Paper 122378, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122378
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/122378/1/MPRA_paper_122378.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Quantum economics; uncertainty; equilibrium; price dynamics; money flow; financial markets;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • C0 - Mathematical and Quantitative Methods - - General
    • E0 - Macroeconomics and Monetary Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:122378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.