Quantum Economics

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Abstract

A decade after the financial crisis, there is a growing consensus that the neoclassical approach to economics has failed, and that new approaches are needed. This paper argues that economics has been trying to solve the wrong problem. Economics sees itself as the science of scarcity, but instead it should be the science of money. Just as physicists’ ideas about quantum matter were formed by studying the exchange of particles at the subatomic level, so economics should begin by analysing the properties of money-based transactions, which like quantum entities have a fundamentally dualistic nature. By building on ideas from quantum money, quantum finance, and quantum social science, the paper shows that the economy is an archetypal example of a quantum social system, complete with its own versions of measurement uncertainty, entanglement, and so on. This leads to a proposal for a quantum economics, which is to neoclassical economics what quantum physics is to classical physics.

Posted for comments on 20 Oct 2017, 2:11 pm.

Comments (1)

  • Valerian Popkov says:

    The Serbian scientist M. Petrovich (written in French) published in Paris a book Mecanismes Communs aux phenomenes disparates. Nouwelle Collection Scientifique. (Paris, 1921). (See also review by André Lalande (Revue Philosophique de la France T. 95 (JANVIER A JUIN 1923), pp. 299-302). Petrovich caught in the common scientific, heuristic and monistic value the theory of analogy. In particular, he argued that common mechanisms of heterogeneous phenomena lead to the concept of analogies of whole groups of phenomena. Common features in each such group constitute its “analogical core”, or “core group”. It is true that the core group in the Quantum economy is money. It is also true that “money occupies a special place in the intersection between the world of real objects and ideas of social value, its dualistic properties are experienced by society as a whole” (see Orrell, D. (2016). A quantum theory of money and value. Economic Thought, 5(2), 19-36. But there is a logical aspect of duality. Today everything is built on a logical system belongs either to logic contradictory relations or logic contrary relations. Recall that contradictory opposition is incompatible concept between which no middle-intermediate concepts and which completely exclude each other (e.g. black and white). Contrary concept is also incompatible concepts, but between which there may be some intermediate concept (e.g., between white and black can exist grey). Two types of relations (contradictory and contrary) corresponds to two types of logic, namely sets of the discrete type corresponds to the logic contradictory relations, and sets continuous type logic are contrary relations. In the ordinary perception of the world around us is represented as a set of individual (discrete) objects (things) that are separated in space, pronounced borders. But this psychophysical error. Real world around us is a constantly changing world, it’s a world of continuous processes. What type of logic should be used when considering money? Without a doubt, money is discrete sort of social reality. Generally speaking, to describe the objects in the continuous world by discrete system means deliberately to fall into error. But this error is largely offset by the fact that continuous real-world objects are assigned to discrete values and money. Money is penetrating in such objects (goods and services) can easily to connect continuous with discrete (leave out braсkets the question – is it always possible to adequately make this connection). So, money is the unique means of discrete – continuous type, allowing to work in two spaces – discrete and continuous.

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