Stock market speculation: Spontaneous symmetry breaking of economic valuation

Spontaneous Symmetry Breaking of Economic Valuation

Firm foundation theory estimates a security’s firm fundamental value based on four determinants: expected growth rate, expected dividend payout, the market interest rate and the degree of risk. In contrast, other views of decision-making in the stock market, using alternatives such as human psychology and behavior, bounded rationality, agent-based modeling and evolutionary game theory, expound ...

Stock Market Valuation and Globalization

We study the valuation of similar assets in different national markets and how the valuation differentials have evolved through time. We focus on the impact of globalization and propose a (model free) measure of the degree of segmentation of world equity markets. We characterize which factors determine its cross-sectional and time series variation. Our first goal is to link the measure to the d...

Nonperturbative Spontaneous Symmetry Breaking

One of the most astonishing results of quantum field theory is spontaneous symmetry breaking. One can say that it is the situation when something arises from the quantization. This means that on the quantum level one has something that was not present on the classical level. Coleman and Weinberg [1] write : “ . . . higher-order effects may qualitatively change the character of a physical theory...

Spontaneous Symmetry Breaking

THE FRANK KINETIC MODEL FOR SPONTANEOUS CHIRAL SYMMETRY BREAKING WITH VARIABLE CONCENTRATION OF THE ACHIRAL SUBSTRATE

This paper considers the possibility of spontaneous transition of aracemic mixture (composed of equal amounts of two enantiomeric species, say L and D) into a monochiral state (in which only one enantiomer, say L, is present). Transitions of this kind have been recently experimentally observed. A plausible approach to this phenomenon is a model put forward by Frank, based on simple laws of ...