TITLE:
On the Application of Fokker-Planck Equation to Psychological Future Time
AUTHORS:
Ognjen Vukovic
KEYWORDS:
Psychological Future Time, Fokker-Planck Equation, Kolmogorov Forward Equation, Lagrangian, Nonlinear Future Time
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.5 No.10,
October
14,
2015
ABSTRACT: This paper tries to make a comparison and connection between Fokker-Planck or forward Kolmogorov equation and psychological future time which is based on quantum mechanics. It will be showed that in quantum finance forward interest rate model can be further improved by noting that the predicted correlation structure for field theory models depends only on variable where t is present time and x is future time. On the other side, forward Kolmogorov equation is a parabolic partial differential equation, requiring international conditions at time t and to be solved for . The aforementioned equation is to be used if there are some special states now and it is necessary to know what can happen later. It will be tried to establish the connection between these two equations. It is proved that the psychological future time if applied and implemented in Fokker-Planck equation is unstable and is changeable so it is not easily predictable. Some kinds of nonlinear functions can be applied in order to establish the notion of psychological future time, however it is unstable and it should be continuously changed.