Preface |
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xv | |
About the Authors |
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xix | |
Part I: Quantum Counting: The Number Operator in a Social Science Context |
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1 | (96) |
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3 | (16) |
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3 | (8) |
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1.1.1 Three versions of physics |
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5 | (2) |
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1.1.2 Quantizing classical physics |
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7 | (1) |
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8 | (1) |
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1.1.4 Quantum field theory |
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9 | (2) |
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1.2 Counting in culture, society, and science |
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11 | (3) |
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1.2.1 As simple as 1, 2, 3 |
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11 | (2) |
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1.2.2 And then there were none |
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13 | (1) |
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1.3 Classical or quantum representation? |
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14 | (5) |
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1.3.1 Data and information |
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14 | (1) |
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1.3.2 Representation I: The classical way |
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14 | (1) |
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1.3.3 Representation II: The quantum way |
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15 | (1) |
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1.3.4 Second quantization and how to count things |
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16 | (3) |
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2 Classical Interlude: Modeling Population Dynamics |
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19 | (10) |
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2.1 Population growth and decay: Just rabbits |
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20 | (1) |
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2.2 Introducing a second species: Enter the foxes |
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21 | (2) |
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2.3 Some observations on the Lotka-Volterra model |
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23 | (6) |
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2.3.1 Fluctuating population numbers |
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23 | (2) |
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2.3.2 Eliminating one of the variables |
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25 | (1) |
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2.3.3 Integral of the motion and conserved quantities |
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26 | (1) |
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2.3.4 Range of applications |
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27 | (2) |
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3 A Quantum Description of Systems |
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29 | (16) |
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3.1 Operators, states, and eigenvalues |
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29 | (3) |
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3.1.1 The Schrodinger equation |
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29 | (1) |
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30 | (1) |
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3.1.3 Eigenvalue equations |
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31 | (1) |
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3.1.4 Expectation values, normalization, and orthogonality |
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32 | (1) |
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32 | (1) |
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3.3 Some special operator properties |
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33 | (7) |
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33 | (2) |
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3.3.2 Hermitian operators |
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35 | (1) |
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36 | (2) |
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3.3.4 When do operators commute? |
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38 | (1) |
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3.3.5 Expansion of commutation brackets |
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39 | (1) |
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39 | (1) |
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40 | (2) |
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42 | (3) |
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45 | (12) |
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4.1 The mechanics of counting |
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45 | (4) |
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4.1.1 Repetition, cyclic processes, and clocks |
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46 | (2) |
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4.1.2 Phasors: The complex plane as a clock counter |
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48 | (1) |
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4.2 Generating a spectrum of integers with the integer operator |
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49 | (1) |
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4.3 Generating a spectrum of natural numbers with the number operator |
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50 | (3) |
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4.4 Occupation number notation and properties of a and a+ |
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53 | (4) |
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4.4.1 Occupation number notation |
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53 | (1) |
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4.4.2 Everything stops at zero |
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54 | (1) |
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4.4.3 Building the state |n) from scratch |
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55 | (1) |
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4.4.4 Commutation brackets with functions of a and a+ |
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55 | (2) |
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57 | (26) |
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57 | (1) |
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5.2 Several non-trading traders |
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58 | (2) |
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5.3 Allowing the traders to trade |
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60 | (1) |
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5.4 A simple transaction model: Two traders |
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61 | (4) |
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5.4.1 Setting up the Hamiltonian |
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61 | (1) |
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5.4.2 Applying the HEM to the population numbers |
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61 | (1) |
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5.4.3 A direct method of solution |
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62 | (3) |
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5.5 Key characteristics of the simple quantum two-trader model |
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65 | (2) |
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5.6 Eigenfrequency approach |
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67 | (4) |
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5.7 Stable trading partnerships |
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71 | (1) |
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5.8 Several trading traders |
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72 | (3) |
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5.8.1 A three-trader example |
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72 | (3) |
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5.9 Independent subsystems: Worlds within worlds |
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75 | (1) |
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5.10 Asymmetrical trading |
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76 | (4) |
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5.10.1 Different exchange rates |
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76 | (1) |
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5.10.2 A new integrals of the motion |
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77 | (1) |
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5.10.3 A worked example, P = 1, Q = 2 |
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78 | (1) |
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5.10.4 An approximate solution |
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79 | (1) |
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80 | (3) |
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83 | (4) |
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6.1 Nearest neighbor hopping in one dimension |
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83 | (3) |
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86 | (1) |
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87 | (6) |
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7.1 Buying and selling models |
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87 | (1) |
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7.2 Integrals of the motion |
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88 | (1) |
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7.3 Solving the equations of motion |
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89 | (1) |
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7.4 Further refinements: Supply and price |
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90 | (3) |
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93 | (2) |
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95 | (2) |
Part II: The Quantum-Like Paradigm with Simple Applications |
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97 | (66) |
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99 | (32) |
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99 | (4) |
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9.2 Some basic ideas from classical mechanics |
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103 | (6) |
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9.2.1 Energy conservation |
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103 | (1) |
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9.2.2 First analogs with social science |
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104 | (1) |
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9.2.3 The Lagrangian and the action functional |
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105 | (1) |
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9.2.4 The birth of the Hamiltonian |
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106 | (1) |
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9.2.5 Momentum conservation in finance? |
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107 | (2) |
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9.2.6 Conservation: How important is it? |
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109 | (1) |
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9.3 Applying basic classical mechanics to finance and economics: Some examples |
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109 | (8) |
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9.3.1 Example 1: A synergetics approach in behavioral economics |
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109 | (2) |
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9.3.2 Example 2: An action functional and arbitrage |
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111 | (2) |
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9.3.3 Example 3: Re-modeling equilibrium pricing with a Lagrangian framework |
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113 | (4) |
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9.4 Option pricing and physics based partial differential equations |
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117 | (14) |
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117 | (1) |
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9.4.2 Brownian motion and Einstein |
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118 | (4) |
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122 | (1) |
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9.4.4 Some toolkit concepts, which relate to stochastics |
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123 | (1) |
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9.4.5 Taylor series adapted for stochastic processes |
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124 | (2) |
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126 | (1) |
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9.4.7 'Option pricing: The stochastic approach |
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126 | (2) |
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128 | (3) |
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10 Modeling Information with an Operational Formalism |
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131 | (22) |
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10.1 Elementary quantum mechanics |
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131 | (2) |
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10.2 Elementary quantum mechanics in social science |
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133 | (7) |
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10.2.1 An example from finance: State prices |
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136 | (3) |
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10.2.2 Quantum mathematics and finance |
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139 | (1) |
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10.3 Non-Hermitian Hamiltonians in modern quantum physics |
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140 | (2) |
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10.4 Bohmian mechanics and social science? |
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142 | (11) |
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10.4.1 Smooth trajectories? |
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145 | (1) |
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10.4.2 Fisher information? |
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146 | (3) |
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149 | (1) |
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150 | (3) |
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11 Decision Making and Quantum Probability |
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153 | (4) |
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11.1 Ellsberg paradox and elementary quantum mechanics |
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153 | (12) |
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156 | (1) |
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157 | (6) |
Part III: The Quantum-Like Paradigm with Advanced Applications |
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163 | (88) |
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12 Basics of Classical Probability |
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165 | (14) |
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165 | (1) |
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12.2 Classical probability |
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166 | (8) |
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12.2.1 Bayes formula, conditional probability, and formula of total probability |
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170 | (1) |
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12.2.2 Interpretation of probability: Statistical, subjective and their mixing |
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171 | (1) |
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12.2.3 Contextuality of Kolmogorov theory |
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172 | (1) |
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173 | (1) |
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12.3 Classical decision making through the Bayesian probability update |
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174 | (5) |
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12.3.1 Subjective and frequentist interpretations of classical Bayesian inference |
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175 | (2) |
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177 | (2) |
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179 | (16) |
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13.1 Quantum probability: Pure states |
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179 | (5) |
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182 | (2) |
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13.2 Quantum decision making through update of the belief state |
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184 | (5) |
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188 | (1) |
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13.3 Quantum probability: Mixed states |
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189 | (2) |
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191 | (1) |
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13.4 Events in quantum logic |
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191 | (4) |
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195 | (12) |
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14.1 General discussion on Aumann's theorem for classical and quantum agents |
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198 | (4) |
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14.2 Classical probabilistic approach to common knowledge |
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202 | (5) |
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15 Quantum(-like) Formalization of Common Knowledge |
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207 | (16) |
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15.1 Quantum representation of the states of the world |
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207 | (2) |
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15.2 Knowing events, quantum representation |
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209 | (3) |
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211 | (1) |
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15.3 Common knowledge, quantum representation |
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212 | (1) |
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15.4 Quantum state update, projection postulate |
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213 | (1) |
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15.5 Quantum(-like) viewpoint on the Aumann's theorem |
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213 | (8) |
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15.5.1 Common prior assumption |
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213 | (2) |
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15.5.2 Disagree from quantum(-like) interference |
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215 | (6) |
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15.6 Agent with information representation based on incompatible question-observables |
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221 | (2) |
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223 | (12) |
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16.1 Examples illustrating agreement on disagree |
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223 | (2) |
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224 | (1) |
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16.2 Example: Agreement on disagree from two opinion polls |
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225 | (8) |
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16.2.1 Still possible to agree on the posterior probabilities |
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231 | (1) |
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16.2.2 Is entanglement important? |
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232 | (1) |
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233 | (1) |
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16.3 A concluding discussion on approaching agreement between quantum agents |
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233 | (2) |
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235 | (8) |
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17.1 Operator approach to common knowledge formalization |
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235 | (8) |
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17.1.1 What does it mean to know? Quantum probabilistic formulation |
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239 | (4) |
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243 | (8) |
Index |
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251 | |