Quantum Economics and Physics

Abstract

Economics has long been shaped, both directly and indirectly, by ideas from classical physics. For example the idea, which remains dominant, that forces of supply and demand bring prices to a stable equilibrium, was first developed mathematically using mechanistic arguments, while the concept of utility was related to energy. Quantum ideas in contrast have only recently begun to find some applications in the field. This article asks why it has taken so long. We consider several different interpretations of the relationship between quantum physics and quantum economics, and argue that, while all have merit, what ultimately counts is whether quantum models outperform classical models as a means to understand and predict economic phenomena.