Transactional Interpretation for the Principle of Minimum Fisher Information

The principle of minimum Fisher information states that in the set of acceptable probability distributions characterizing the given system, it is best done by the one that minimizes the corresponding Fisher information. This principle can be applied to transaction processes, the dynamics of which can be interpreted as the market tendency to minimize the information revealed about itself. More information involves higher costs (information is physical). The starting point for our considerations is a description of the market derived from the assumption of minimum Fisher information for a strategy with a fixed financial risk. Strategies of this type that minimize Fisher information overlap with the well-known eigenstates of a the quantum harmonic oscillator. The analytical extension of this field of strategy to the complex vector space (traditional for quantum mechanics) suggests the study of the interference of the oscillator eigenstates in terms of their minimization of Fisher information. It is revealed that the minimum value of Fisher information of the superposition of the two strategies being the ground state and the second excited state of the oscillator, has Fisher information less than the ground state of the oscillator. Similarly, less information is obtained for the system of strategies (the oscillator eigenstates) randomized by the Gibbs distribution. We distinguish two different views on the description of Fisher information. One of them, the classical, is based on the value of Fisher information. The second, we call it transactional, expresses Fisher information from the perspective of the constant risk of market strategies. The orders of the market strategies derived from these two descriptions are different. From a market standpoint, minimizing Fisher information is equivalent to minimizing risk.

A Physical Basis for the Second Law of Thermodynamics: Quantum Nonunitarity

It is argued that if the non-unitary measurement transition, as codified by Von Neumann, is a real physical process, then the ‘probability assumption’ needed to derive the Second Law of Thermodynamics naturally enters at that point. The existence of a real, indeterministic physical process underlying the measurement transition would therefore provide an ontological basis for Boltzmann’s Stosszahlansatz and thereby explain the unidirectional increase of entropy against a backdrop of otherwise time-reversible laws. It is noted that the Transactional Interpretation (TI) of quantum mechanics provides such a physical account of the non-unitary measurement transition, and TI is brought to bear in finding a physically complete, non-ad hoc grounding for the Second Law.