Instant Diffusion Equation of Price Changing and Time-Space Exchanging Description

Tianquan Yun

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DOI: 10.4236/ti.2011.22012                

Abstract

Analogy to heat diffusion equation, an instant diffusion equation of price changing is obtained and explained by “time-space exchange” via Newton’s second law, in which the partial derivative of price respected to time is viewed as a “force”, and the derivative of transportation velocity of price between commodities is viewed as an “acceleration”. It is a partial differential equation of second order. The solution of this equation is found and the definitions of “order of commodities”, “distance between commodities” are given. An important relationship of “time-space exchange” in a stationary process of diffusion of price changing is found. This provides a base for describing the relation of “time-space exchange” quantitatively. Examples for calculating and checking the diffusion of price changing in pork, beef, and mutton based on the data taken on February 5th 2008 are given.

Keywords

Price, Diffusion of Price Changing, Heat Diffusion Equation, Partial Differential Equation, Order of Commodity, Newton’s Second Law, Time-Space Exchanging

Conflicts of Interest

The authors declare no conflicts of interest.

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