Quantum Entropy and Accounting

40 Pages Posted: 13 Aug 2018

See all articles by John C. Fellingham

John C. Fellingham

Ohio State University (OSU) - Department of Accounting & Management Information Systems

Haijin Lin

University of Houston

Douglas Schroeder

Ohio State University (OSU) - Department of Accounting & Management Information Systems

Date Written: July 27, 2018

Abstract

In a previous paper we establish the equality between accounting numbers and information in a classical Arrow-Debreu economy. One of the conditions is complete market, that is, there exists an Arrow-Debreu security for every possible state realization. In this paper, we relax this condition and establish the equality between accounting numbers and information by exploring quantum information and measurement mathematics. In the revised domain expanded relationship, von Neumann entropy replaces Shannon entropy to capture the information effect.

Keywords: accounting, information, entropy

Suggested Citation

Fellingham, John C. and Lin, Haijin and Schroeder, Douglas, Quantum Entropy and Accounting (July 27, 2018). Available at SSRN: https://ssrn.com/abstract=3220892 or http://dx.doi.org/10.2139/ssrn.3220892

John C. Fellingham

Ohio State University (OSU) - Department of Accounting & Management Information Systems ( email )

2100 Neil Avenue
Columbus, OH 43210
United States
614-292-2488 (Phone)
614-292-2118 (Fax)

Haijin Lin (Contact Author)

University of Houston ( email )

390F Melcher Hall
Bauer College of Business
Houston, TX 77204-6021
United States
7137437771 (Phone)

Douglas Schroeder

Ohio State University (OSU) - Department of Accounting & Management Information Systems ( email )

2100 Neil Avenue
Columbus, OH 43210
United States
614-292-6427 (Phone)

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