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2023 | OriginalPaper | Chapter

Logical Dimension in Modeling

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Abstract

The paper analyzes the proof of equivalence of the efficient market hypothesis and the hypothesis P = NP. The basis of this proof is enabling behavioral characteristics of the decision-making agent into the financial market model and, accordingly, characteristics of the observer into the computing model. Economic models, in which the market is efficient, are based on the same simplifying assumptions about the agent as the assumptions that make it possible to justify the hypothesis P = NP. A similar methodological approach makes it possible to show the incompatibility of Minsky’s hypothesis of financial instability with the hypothesis of an efficient market. A key element in the analysis of all three hypotheses is the ability of a person to generate solutions that go beyond the framework of the system in which he is initially immersed. In the context of our analysis, an important aspect is applying non-classical logic. An additional justification for this statement provides the analysis of Arrow's impossibility theorem and FLP's impossibility theorem.

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Metadata
Title
Logical Dimension in Modeling
Author
Gisin Vladimir
Copyright Year
2023
DOI
https://doi.org/10.1007/978-3-031-33728-4_13

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