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Potential in the Schrodinger equation: estimation from empirical data


posted on 23 March 2020

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A recent model for the stock market calculates future price distributions of a stock as a wave function of a quantum particle confined in an infinite potential well. In such a model the question arose as to how to estimate the classical potential needed for solving the Schrodinger equation. In the present article the method used in that work for evaluating the potential is described, in the simplest version to implement, and more sophisticated implementations are suggested later.