Friday, September 07, 2007

Of Physics and Finance

Is this more bastardization of Quantum Mechanics? Well, not quite, but it is still perpetuating the common misconception about QM, especially on the wave-particle duality. This article tries to point out similarities, analogies, and parallel actions between QM and the world of finance.

It really is difficult for me to accept one of these things, because using the argument that they appear to share SOME characteristics doesn't mean that they formalism for both should be identical. QM is MORE than just "wave-particle duality". In fact, if you have read my earlier entry on this, there is NO DUALITY in the formalism of QM! So using such phenomenon to make similarities between these two fields is highly dubious.

Still, at the very least, the article isn't pushing for the USE of QM's principle in finances, because that would be outright crackpottery, unlike some of the recent bastardization of QM that we have seen. And there is a legitimate merging of physics and economics that is now popularly called "econophysics". I just wish that people don't try to extend a superficial understanding of physics, especially quantum mechanics, into something it isn't supposed to be used.


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