We study the effect of edge diffraction on the semiclassical analysis of two-dimensional quantum systems by deriving a trace formula which incorporates paths hitting any number of vertices embedded in an arbitrary potential. This formula is used to study the cardioid billiard, which has a single vertex. The formula works well for most of the short orbits we analysed but fails for a few diffractive orbits due to a breakdown in the formalism for certain geometries. We extend the symbolic dynamics to account for diffractive orbits and use it to show that in the presence of parity symmetry the trace formula decomposes in an elegant manner such that for the cardioid billiard the diffractive orbits have no effect on the odd spectrum. Including diffractive orbits helps resolve peaks in the density of even states but does not appear to affect their positions. An analysis of the level statistics shows no significant difference between spectra with and without diffraction.
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