Klein - Gordon equation for market wealth operations
Magdalena Pelc

TL;DR
This paper introduces a modified Klein-Gordon equation to model market wealth dynamics, showing that market oscillations propagate at light speed, with initial pulses damping over time and diffusing as per Fourier law.
Contribution
It proposes a novel application of the Klein-Gordon equation to financial markets, linking physical wave equations to market behavior modeling.
Findings
Market oscillations propagate at light velocity.
Initial market pulses are damped over time.
Market diffusion follows Fourier law at large times.
Abstract
In this paper the modified Klein - Gordon equation for market processes is proposed and solved. It is argued that the oscillations in market propagate with the light velocity. The initial pulse in the market is damped and for very large time diffused according to the Fourier law.
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Taxonomy
TopicsStochastic processes and financial applications
