Article
Version 2
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Principles of Market Dynamics: Economic Dynamics and Standard Model (II)
Version 1
: Received: 19 October 2024 / Approved: 20 October 2024 / Online: 21 October 2024 (11:37:04 CEST)
Version 2 : Received: 26 October 2024 / Approved: 26 October 2024 / Online: 28 October 2024 (13:38:28 CET)
Version 2 : Received: 26 October 2024 / Approved: 26 October 2024 / Online: 28 October 2024 (13:38:28 CET)
How to cite: Yang, Y. Principles of Market Dynamics: Economic Dynamics and Standard Model (II). Preprints 2024, 2024101564. https://doi.org/10.20944/preprints202410.1564.v2 Yang, Y. Principles of Market Dynamics: Economic Dynamics and Standard Model (II). Preprints 2024, 2024101564. https://doi.org/10.20944/preprints202410.1564.v2
Abstract
Market dynamics is based on classical electrodynamics and uses quantum electrodynamics as a reference model framework. Its construction is always based on Bourbaki structuralism. Market dynamics studies the interaction between price, demand and supply. Quantum electrodynamics studies the interaction between photons, electrons and positrons. Both belong to the category of single charge dynamics and share a symmetry group. Market dynamics introduces market charge and defines demand and supply respectively. By examining the market hesitation phenomenon, spin is introduced as the intrinsic property of demand and supply. Therefore, demand and supply can be defined by Dirac spinors. By introducing the coin cone and valence shell, virtual prices are defined; demand and supply interact by exchanging virtual prices. These interactions can be described by Feynman diagrams. The cognitive field has the function of polarizing decision-making and is described by the magnetic field. Market dynamics believes that the social economy itself is an experiment and every market participant is an observer. We established the non-commutative relationship of market observation and the market version of the uncertainty principle of observation information, and defined the quantum version of the invisible hand. On the basis of classical electrodynamics, the relationship between price field and Maxwell field is discussed, and the concept of gauge potential is introduced. Market fluctuations (including mesoscopic and quantum fluctuations) caused by high-order cognition (including gaming, decision-making and reasoning). The fluctuation phenomena inherent in various markets are the basis for understanding both the cognition of market participants and the phase transition of the market. Six components of the market wave function are defined, namely the global phase factor, global gauge potential and global gauge field strength, as well as the local phase factor, local gauge potential and local gauge field strength. Gauge transformation is a integral part of quantum electrodynamics and market dynamics. The gauge principle is then given to show that global symmetry is a necessary condition for local symmetry. Four operators are introduced, namely the Newton mean operator, the Einstein cone operator, the Schrödinger evolution operator and the Dirac field theory operator. These four operators are applied to the market wave function respectively, presenting four operator phases of the market wave function. The change of operator state is called the phase transition of the market wave function.
Keywords
market charge; price; demand; supply; spin; wave function; gauge transformation; symmetry group; invisible hand; non-commutative relation; market fluctuations; Dirac operator
Subject
Social Sciences, Cognitive Science
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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