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Natural sciences
- Quantum information, computation and communication
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Social sciences
- Econometric and statistical methods and methodology
The aim of this research proposal is to explore the potential of quantum algorithms in a financial-economic context, with a focus on methodologies based on ‘quantum walks.’ The concept of quantum walks, for example, allows the modeling of price evolution for financial products. The diffusion properties of financial products obtained from a quantum model can be compared to those from a classical approach (typically based on extensions of a model for Brownian motion). The benefit for financial risk analysis is that a quantum approach provides a mathematical framework for uncertainties and competition between various strategies. Data analysis on financial data will help evaluate how well quantum algorithms capture the dynamics of financial markets. These insights and their generalizations may be used to develop a more theoretical quantum-economic model.