The Quantum Stock Market: And the Road Not Taken in Finance

A new paradigm based on quantum probability that can model stock markets and price options-and also upends classical quantitative finance.

In The Quantum Stock Market, David Orrell combines theory and new empirical findings to argue for a new approach to finance based on quantum probability. The main finding, a property called q-variance, may be unique in finance in that it was discovered as the result of a prediction, affects financial markets in general, has no tunable parameter, and has i...