Fisher information and quantum mechanical models for finance

TL;DR

This paper derives financial market price distributions using Fisher information extremization, revealing a quantum-like framework that maps various financial models onto quantum mechanical analogs.

Contribution

It introduces a novel approach linking Fisher information extremization to quantum models in finance, providing a unified framework for financial market descriptions.

Findings

Financial market prices can be modeled via Fisher information extremization.

Quantum-like descriptions naturally emerge for financial markets.

Different financial models can be mapped onto quantum mechanical frameworks.

Abstract

The probability distribution function (PDF) for prices on financial markets is derived by extremization of Fisher information. It is shown how on that basis the quantum-like description for financial markets arises and different financial market models are mapped by quantum mechanical ones.