On Quantum Ambiguity and Potential Exponential Computational Speed-Ups to Solving Dynamic Asset Pricing Models

• URL: http://arxiv.org/abs/2405.01479v3
• Date: Fri, 22 Aug 2025 22:28:45 GMT
• Title: On Quantum Ambiguity and Potential Exponential Computational Speed-Ups to Solving Dynamic Asset Pricing Models
• Authors: Eric Ghysels, Jack Morgan,
• Abstract summary: We formulate quantum computing solutions to a large class of dynamic nonlinear asset pricing models.<n>We introduce quantum decision-theoretic foundations of ambiguity and model/ parameter uncertainty to deal with model selection.
• Score: 0.0
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: We formulate quantum computing solutions to a large class of dynamic nonlinear asset pricing models using algorithms, in theory exponentially more efficient than classical ones, which leverage the quantum properties of superposition and entanglement. The equilibrium asset pricing solution is a quantum state. We introduce quantum decision-theoretic foundations of ambiguity and model/parameter uncertainty to deal with model selection.

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