Approximation probabilities, the law of quasistable markets, and phase transitions from the "condensed" state

V. P. Maslov
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V. P. Maslov: Moscow, Russia

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Abstract: For common people, in contrast to brokers, bankers, and those who play on rising and falling prices of stocks, the stock market law is based on the simple fact that the depositors aim for financial profit at any given concrete stage. The common depositor cannot cause any significant variations in prices. This concept suggests an analogy with the quasistable physics, i.e., thermodynamics, in the situation in which the temperature varies slowly along with the external conditions. Therefore, in the quasistable market, we can see phase transitions similar to those in the situation of the Bose-condesate in thermodynamics. We stress the positive role of information for common depositors and the possibility of changing bonds of large denomination into bonds of small denomination.

Date: 2003-07
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