{
  "annotation_id": "7345b460-a0a8-4bb8-9170-b0e627b2ed21",
  "date_created": "2026-03-02T18:00:39.775000Z",
  "date_modified": "2026-03-02T18:00:39.775000Z",
  "file_hash": "4f38b320aa7a75f7abb7814a1a03697e60987af1c38214577aab3b379a471a41",
  "private": false,
  "record": {
    "abstract": "Quantum theory is used to model secondary financial markets. Contrary to\nstochastic descriptions, the formalism emphasizes the importance of trading in\ndetermining the value of a security. All possible realizations of investors\nholding securities and cash is taken as the basis of the Hilbert space of\nmarket states. The temporal evolution of an isolated market is unitary in this\nspace. Linear operators representing basic financial transactions such as cash\ntransfer and the buying or selling of securities are constructed and simple\nmodel Hamiltonians that generate the temporal evolution due to cash flows and\nthe trading of securities are proposed. The Hamiltonian describing financial\ntransactions becomes local when the profit/loss from trading is small compared\nto the turnover. This approximation may describe a highly liquid and efficient\nstock market. The lognormal probability distribution for the price of a stock\nwith a variance that is proportional to the elapsed time is reproduced for an\nequilibrium market. The asymptotic volatility of a stock in this case is\nrelated to the long-term probability that it is traded.",
    "arxiv_id": "physics/0203006",
    "authors": [
      "Martin Schaden"
    ],
    "categories": [
      "physics.soc-ph",
      "cond-mat",
      "physics.data-an",
      "q-fin.ST"
    ],
    "doi": "10.1016/S0378-4371(02)01200-1",
    "title": "Quantum Finance",
    "url": "https://arxiv.org/abs/physics/0203006"
  },
  "schema_id": "dorsal/arxiv",
  "source": {
    "execution_id": "b5ed9e2d-cd1e-40f6-b8ba-4a5e1e6b2367",
    "id": "arXiv Dataset IDs",
    "type": "Model",
    "variant": "snapshot-2026-03-01",
    "version": "0.1.0"
  },
  "user_id": 1000002
}