# The Color of Money: Threshold Effects in Quantum Economics

## Abstract

**:**

## 1. Introduction

## 2. The Entropic Force

## 3. The Quantum Threshold Effect

## 4. The Money Power

## 5. Discussion

## 6. Conclusions

## Funding

## Conflicts of Interest

## References

- Planck, M. Über das gesetz der energieverteilung im normalspektrum (On the law of distribution of energy in the normal spectrum). Ann. Phys.
**1901**, 309, 553–563. [Google Scholar] [CrossRef] - Einstein, A. Über einen die Erzeugung und verwandlung des lichtes betreffenden heuristischen gesichtspunkt (On a heuristic viewpoint concerning the production and transformation of light). Ann. Phys.
**1905**, 17, 132–148. [Google Scholar] [CrossRef] - Busemeyer, J.; Bruza, P. Quantum Models of Cognition and Decision; Cambridge University Press: Cambridge, UK, 2012. [Google Scholar]
- Shubik, M. Quantum economics, uncertainty and the optimal grid size. Econ. Lett.
**1999**, 643, 277–278. [Google Scholar] [CrossRef] - Schaden, M. Quantum finance. Physica A
**2002**, 3161, 511–538. [Google Scholar] [CrossRef] [Green Version] - Baaquie, B.E. Quantum Finance: Path Integrals and Hamiltonians for Options and Interest Rates; Cambridge University Press: Cambridge, UK, 2007. [Google Scholar]
- Haven, E.; Khrennikov, A. Quantum Social Science; Cambridge University Press: Cambridge, UK, 2013. [Google Scholar]
- Wendt, A. Quantum Mind and Social Science: Unifying Physical and Social Ontology; Cambridge University Press: Cambridge, UK, 2015. [Google Scholar]
- Der Derian, J.; Wendt, A. ‘Quantizing international relations’: The case for quantum approaches to international theory and security practice. Secur. Dialogue
**2020**, in press. [Google Scholar] [CrossRef] - Orrell, D. The value of value: A quantum approach to economics, security and international relations. Secur. Dialogue
**2020**, 51, 482–498. [Google Scholar] [CrossRef] - Planck, M. Scientific Autobiography and Other Papers; New York Philosophical Library: New York, NY, USA, 1949. [Google Scholar]
- Khrennikov, A. Ubiquitous Quantum Structure; Springer: Berlin/Heidelberg, Germany, 2010. [Google Scholar]
- Khrennikova, P.; Haven, E. Instability of political preferences and the role of mass media: A dynamical representation in a quantum framework. Int. J. Theor. Phys.
**2014**, 53, 1346–1360. [Google Scholar] [CrossRef] - Khrennikov, A. ‘Social Laser’: Action amplification by stimulated emission of social energy. Philos. Trans. R. Soc. A
**2016**, 374, 20150094. [Google Scholar] [CrossRef] [Green Version] - Orrell, D. A quantum model of supply and demand. Physica A
**2020**, 539, 122928. [Google Scholar] [CrossRef] - Orrell, D. Quantum Economics and Finance: An Applied Mathematics Introduction, 2nd ed.; Panda Ohana: New York, NY, USA, 2021. [Google Scholar]
- Sokolov, I.M. Statistical mechanics of entropic forces: Disassembling a toy. Eur. J. Phys.
**2010**, 31, 1353–1367. [Google Scholar] [CrossRef] - Roos, N. Entropic forces in Brownian motion. Am. J. Phys.
**2014**, 8212, 1161–1166. [Google Scholar] [CrossRef] [Green Version] - Sarkissian, J. Quantum coupled-wave theory of price formation in financial markets: Price measurement, dynamics and ergodicity. Physica A
**2020**, in press. [Google Scholar] [CrossRef] - Yukalov, V.I.; Sornette, D. Preference reversal in quantum decision theory. Front. Psychol.
**2015**, 6, 1538. [Google Scholar] [CrossRef] [PubMed] [Green Version] - Khrennikov, A. Quantum-like modeling of cognition. Front. Phys.
**2015**, 3, 77. [Google Scholar] [CrossRef] [Green Version] - Yukalov, V.I.; Sornette, D. Quantitative predictions in quantum decision theory. IEEE Trans. Syst. Man Cybern. Syst.
**2018**, 48, 366–381. [Google Scholar] [CrossRef] [Green Version] - Kahneman, D.; Knetsch, J.L.; Thaler, R. Experimental tests of the endowment effect and the coase theorem. J. Polit. Econ.
**1990**, 98, 1325–1348. [Google Scholar] [CrossRef] [Green Version] - Güth, W.; Schmittberger, R.; Schwarze, B. An experimental analysis of ultimatum bargaining. J. Econ. Behav. Organ.
**1982**, 34, 367. [Google Scholar] [CrossRef] [Green Version] - Nowak, M.A.; Page, K.M.; Sigmund, K. Fairness versus reason in the ultimatum game. Science
**2000**, 289, 1773–1775. [Google Scholar] [CrossRef] [Green Version] - Orrell, D. Quantum-tative finance. Wilmott
**2020**, 106, 16–23. [Google Scholar] [CrossRef] - Guiso, L.; Sapienza, P.; Zingales, L. The determinants of attitudes toward strategic default on mortgages. J. Financ.
**2013**, 684, 1473–1515. [Google Scholar] [CrossRef] - Bhutta, N.; Dokko, J.; Shan, H. The depth of negative equity and mortgage default decisions. In Federal Reserve Board; FEDS Working Paper No. 2010-35; 2010; Available online: https://ssrn.com/abstract=1895493 (accessed on 10 March 2021). [CrossRef] [Green Version]
- White, B.T. Underwater and not walking away: Shame, fear, and the social management of the housing crisis. Wake For. Law Rev.
**2010**, 45, 971–1023. [Google Scholar] [CrossRef] - Streitfeld, D. No Help in Sight, More Homeowners Walk Away. New York Times, 2 February 2010. [Google Scholar]
- Lloyd, S. Ultimate physical limits to computation. Nature
**2000**, 406, 1047–1054. [Google Scholar] [CrossRef] [PubMed] [Green Version] - Orrell, D. A quantum theory of money and value. Econ. Thought
**2016**, 52, 19–36. [Google Scholar] [CrossRef] [Green Version] - Orrell, D. Quantum Economics: The New Science of Money; Icon Books: London, UK, 2018. [Google Scholar]
- Orrell, D. Quantum economics. Econ. Thou.
**2018**, 72, 63–81. [Google Scholar] - The Color of Someone’s Money—Definitions and Synonyms. Available online: https://www.macmillandictionary.com/dictionary/american/the-color-of-someone-s-money (accessed on 6 August 2020).
- Goldstein, S.; Hara, T.; Tasaki, H. Extremely quick thermalization in a macroscopic quantum system for a typical nonequilibrium subspace. New J. Phys.
**2015**, 174, 045002. [Google Scholar] [CrossRef] [Green Version] - Pothos, E.M.; Waddup, O.J.; Kouassi, P.; Yearsley, J.M. What is rational and irrational in human decision making. Quantum Rep.
**2021**, 3, 242–252. [Google Scholar] [CrossRef] - Mankiw, N.G. Principles of Economics, 8th ed.; Cengage Learning: Boston, MA, USA, 2018. [Google Scholar]

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. |

© 2021 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).

## Share and Cite

**MDPI and ACS Style**

Orrell, D.
The Color of Money: Threshold Effects in Quantum Economics. *Quantum Rep.* **2021**, *3*, 325-332.
https://doi.org/10.3390/quantum3020020

**AMA Style**

Orrell D.
The Color of Money: Threshold Effects in Quantum Economics. *Quantum Reports*. 2021; 3(2):325-332.
https://doi.org/10.3390/quantum3020020

**Chicago/Turabian Style**

Orrell, David.
2021. "The Color of Money: Threshold Effects in Quantum Economics" *Quantum Reports* 3, no. 2: 325-332.
https://doi.org/10.3390/quantum3020020