City Research Online

Abstract

Measurement is a key element of quantum theory where only one possible outcome comes to pass, while other ones disappear. Similar phenomena have been observed in psychology, language processing, and economics. Mathematical descriptions that employ elements of quantum theory have successfully modeled effects observable outside of subatomic physics. Price and value are important concepts in finance. We distinguish between price as something fixed in a transaction and publicly available, while value is an agent’s private assessment. Measurement and updates of both may happen in asynchronous timelines and the frequency of measurements might impact change. When considering derivative markets, usually the focus is on price dynamics given by a stochastic process – market liquidity is often assumed to be infinite. A more detailed consideration of liquidity in relation to price dynamics is desirable and this work outlines possible angles from quantum-inspired models. We discuss how market liquidity and volatility relate to each other in the residential real estate and stock market. We investigate quantum walks, quantum models of psychological decision making by individuals and groups, and the role that the framing of a question plays, all with the goal of an improved understanding of the link between observed price volatility and liquidity.

Publication Type:	Article
Additional Information:	© The Author(s) 2026. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Subjects:	B Philosophy. Psychology. Religion > BF Psychology H Social Sciences > HF Commerce
Departments:	School of Health & Medical Sciences School of Health & Medical Sciences > Department of Psychology & Neuroscience
SWORD Depositor:	Symplectic Administrator

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