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FINANCIAL MARKET MODELING WITH QUANTUM NEURAL NETWORKS

Abstract

Econophysics has developed as a research field that applies the formalism of statistical mechanics and quantum mechanics to address economics and finance problems. The branch of econophysics that applies quantum theory to economics and finance is called quantum econophysics. In finance, quantum econophysics’ contributions have ranged from option pricing to market dynamics modeling, behavioral finance and applications of game theory, integrating the empirical finding, from human decision analysis, that showsthat nonlinear update rules in probabilities, leading to non-additive decision weights, can be computationally approached from quantum computation, with resulting quantum interference terms explaining the non-additiveprobabilities. The current work draws on these results to introduce new tools from quantum artificial intelligence,namely quantum artificial neural networks as a way to build and simulate financial market models with adaptiveselection of trading rules, leading to turbulence and excess kurtosis in the returns distributions for a wide range of parameters.

About the Author

C. P. Gonçalves
University of Lisbon
Russian Federation


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Review

For citations:


Gonçalves C.P. FINANCIAL MARKET MODELING WITH QUANTUM NEURAL NETWORKS. Review of Business and Economics Studies. 2015;3(4):44-63. (In Russ.)



ISSN 2308-944X (Print)
ISSN 2311-0279 (Online)