kaal:claim:4900878-010

Modeling entanglement explains collective phenomena such as herd behavior and market bubbles that classical economic theories struggle to account for, and it also illuminates how economic shocks propagate.

Incorporating entanglement into economic models can help explain the emergence of collective behaviors, such as herd behavior and market bubbles, which are difficult to account for using classical economic theories.

Wulf A. Kaal, Quantum Economy and Tokenomics (2024), 3.2 Entanglement in Economic Systems, p. 19
https://ssrn.com/abstract=4900878 · source PDF

Wulf A. Kaal, Quantum Economy and Tokenomics (2024). SSRN: https://ssrn.com/abstract=4900878

mechanismsupport: arguedrisk-and-incentiveseconomicssystemic-risk

• restated_by kaal:claim:4900880-015 Building entanglement into economic models supplies an explanation for collective behaviors such as herd behav...
• extended_by kaal:claim:4900880-002 Because the states of economic agents are entangled, a change in one part of the economy can affect other part...
• supported_by kaal:claim:4900880-014 Financial derivatives are a major form of economic entanglement that played a key role in recent financial cri...

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• Extension: Beliefs, Shocks, and the Emergence of Roles in Asset Markets: An Agent-Based Modeling Approach