Resonant Transmission Line Method for Econophysics models

TL;DR

This paper applies a resonant transmission line approach to analyze the eigenvalue problem in econophysics models, specifically relating to the Black-Scholes model and Schrödinger equations, revealing underlying structural insights.

Contribution

It introduces a novel application of the resonant transmission line method to econophysics models, offering a new perspective on their eigenvalue problems.

Findings

Revealed deep structural similarities between financial models and quantum mechanics

Provided a new analytical approach to eigenvalue problems in econophysics

Connected Sturm-Liouville problems with transmission line theory

Abstract

In a recent paper [1304.6846], Racorean introduced a formal similarity of the Black-Sholes stock pricing model with a Schr\"odinger equation. We use a previously introduced method of a resonant transmission line for arbitrary 2nd order Sturm-Liouville problems to attack the same problem from a different perspective revealing some deep structures in the naturally associated eigenvalue problem.