264 citations · 331 across the 13 of their papers we have counts for
13 papers
The adaptive nature of confirmation bias
Dorje C. Brody, Karl J. Friston, Bernhard K. Meister +1
In this paper, the phenomenon generally classified as confirmation bias is formulated on the space of square-root probabilities (or equivalently, using the structures of quantum pr…
Caratheodory II: The Geometry of Financial Irreversibility
Bernhard K Meister
In quantum mechanics and finance, numeraire invariance - the unobservability of absolute phase or price scale - fits with a projective and curved state space. This projective geome…
Market Dynamics of Information Avalanches
Bernhard K Meister
Financial markets convert the incremental arrival of information into asset price changes. In a sandpile model grains of sand represent bits of data, and the size of an avalanche,…
Caratheodory, Finite Resources and the Geometry of Arbitrage
B. K. Meister
Caratheodory's axiom of adiabatic inaccessibility states that, in any neighborhood of a thermodynamic state, certain states remain unreachable via adiabatic processes. Non-arbitrag…
Automated Liquidity: Market Impact, Cycles, and De-pegging Risk
B. K. Meister
Three traits of decentralized finance are studied. First, the market impact function is derived for optimal-growth liquidity providers. For a standard random walk, the classic squa…
Application of the Kelly Criterion to Prediction Markets
Bernhard K Meister
Betting markets are gaining in popularity. Mean beliefs generally differ from prices in prediction markets. Logarithmic utility is employed to study the risk and return adjustments…
Gas Fees on the Ethereum Blockchain: From Foundations to Derivatives Valuations
Bernhard K Meister, Henry CW Price
The gas fee, paid for inclusion in the blockchain, is analyzed in two parts. First, we consider how effort in terms of resources required to process and store a transaction turns i…
A quantum double-or-nothing game: The Kelly Criterion for Spins
Bernhard K Meister, Henry C W Price
A sequence of spin-1/2 particles polarised in one of two possible directions is presented to an experimenter, who can wager in a double-or-nothing game on the outcomes of measureme…
Gambling the World Away: Myopic Investors
Bernhard K Meister
Myopic investors are locally rational decision-makers but globally irrational. Their suboptimal portfolios lag the market. As a consequence, other market participants are provided…
NFTs: The Game is Afoot
Bernhard K Meister, Henry CW Price
On the blockchain, NFT games have risen in popularity, spawning new types of digital assets. We present a simplified version of well-known NFT games, followed by a discussion of is…
Meta-CTA Trading Strategies and Rational Market Failures
Bernhard K Meister
Investors trade shifting prices, portfolio values, and in turn their ability to borrow. Concentrated ownership, high price impact and low collateral requirements are propitious for…
Quantum mechanical Carnot engine
C. M. Bender, D. C. Brody, B. K. Meister
A cyclic thermodynamic heat engine runs most efficiently if it is reversible. Carnot constructed such a reversible heat engine by combining adiabatic and isothermal processes for a…
Minimum Decision Cost for Quantum Ensembles
Dorje Brody, Bernhard Meister
For a given ensemble of independent and identically prepared particles, we calculate the binary decision costs of different strategies for measurement of polarised spin 1/2 par…