Abstract

http://ssrn.com/abstract=1296271
 
 

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The Integrative Market Hypothesis for Stock Market Fluctuations


Janet E. Kerr


Pepperdine University - School of Law

Alessandro Casati


Casati & Associates, APLC

2008

Business, Entrepreneurship and the Law, Vol. 1, No. 2, 2007

Abstract:     
This article provides a new understanding of stock market price fluctuations, applying the concepts of quantum physics. This new approach challenges traditional theories of stock price movement, such as Random Walk, finding them antiquated and incomplete. The paper compares the stock price fluctuations to the quantum movement of particles. Specifically, the movement of stock prices on the NASDAQ index is fitted to a curve derived from Plank's equation for black body radiation. The market is ultimately found to be not totally reactive nor random, but taking on an emergent quality. This independent movement is not expected from the interaction of individual traders. These results are astonishing as they are contrary to the prevalent reactive view of market price movement and suggest a radically new understanding of the market. A parallel to human consciousness is drawn to help explain this new understanding. Ultimately, this article is meant to provide a new perspective on the stock market and not as an exhaustive theory.

Number of Pages in PDF File: 18

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Date posted: November 8, 2008 ; Last revised: February 2, 2010

Suggested Citation

Kerr, Janet E. and Casati, Alessandro, The Integrative Market Hypothesis for Stock Market Fluctuations (2008). Business, Entrepreneurship and the Law, Vol. 1, No. 2, 2007. Available at SSRN: http://ssrn.com/abstract=1296271

Contact Information

Janet Kerr (Contact Author)
Pepperdine University - School of Law ( email )
24255 Pacific Coast Highway
Malibu, CA 90263
United States
Alessandro Casati
Casati & Associates, APLC
929 Santa Barbara St
Santa Barbara, CA 93101
United States
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