| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 979272 | Physica A: Statistical Mechanics and its Applications | 2010 | 9 Pages |
Abstract
We present an expression of the economic concept of asymmetric information with which it is possible to derive the dynamical laws of an economy. To illustrate the utility of this approach we show how the assumption of optimal information flow leads to a general class of investment strategies including the well-known QQ theory of Tobin. Novel consequences of this formalism include a natural definition of market efficiency and an uncertainty principle relating capital stock and investment flow.
Related Topics
Physical Sciences and Engineering
Mathematics
Mathematical Physics
Authors
B. Roy Frieden, Raymond J. Hawkins,