Random market versus efficient market

Re: The Material Basis for the Phenomenon of Man by RY Deshpande on Wed 13 Feb 2008 03:19 AM PST Profile Permanent Link

Thanks Ronjon, but I’ve a question—about the extension or ‘application’ of quantum approach to non-quantum systems, for instance, Market Dynamics. It could be stated something as in the following:

Not many people would draw similarities between quantum physics and the financial markets, but this type of unconventional thinking can shed light on the random market versus efficient market paradox that Wall Street lives under.

The philosophical basis for this kind of thinking could be provided by saying that each part of a system is intricately connected to the whole. Ilya Prigogine is invoked to assert that an open system has the capacity to respond to change and disorder by free organization of a complex industrial system. When extended, Margaret Wheatley arrives at the concept of a critical mass required for any change to take place.

But I don’t know if Warren Buffet and Bill Gates believe in this “Uncertainty” stuff. For them financial/commercial behaviour is governed by the Efficient Market Hypothesis wherein inherent investment properties only come into play. The bosonic fields in the quantum-physical world are much simpler and of a definite nature which cannot be said for the interactive social systems and therefore such extensions can be spurious or specious.

When it comes to larger issues about the biological aggregates leading to the phenomenon of man the picture becomes, at the best, subjective and hence not dependable for empirical formulations. Unless we define quantifiable forces, as in the case of Newton’s gravity, we cannot bring these matters in the domain of scientific discussions.

What do you say? In the case of this sort of Fluid Dynamics there is no Gauge Theory available. But then the question is: can there be one at all? RYD