Research project 1b (DC 9) works on the subject of ‘Urban Analytics, Quantum Theory, and Real Estate Valuation’. Quantum probability theory is developed for quantum mechanics, which is expected to receive wider uptake from multiple research communities, ranging from finance to theory of cognition and social sciences. Its application promises to serve a multifaceted set of value orientations (i.e., functional and physical) and will be adopted to support theory development, for example, where valuation will enhance our ability to observe multiple value types and discern their evolutionary behaviour (like observing prices or results of valuation by experts or individuals).
Drawing from quantum mechanics, observations of particles are drawn from interactions between particle fields, like a neutrino that slams into Argon-tanks or the interaction between quarks in a gluon field. Using these particle fields and interactions as inspirational metaphors, this project aims to explore the effects produced by the encounter of multiple value types. Investors or financers may put a greater emphasis on the financial factors affecting value and prefer valuation that undermines other factors.
Other perspectives could be the environmental factors driving value of the building as a physical asset, or societal factors driving value of the building as a cultural or societal asset. Investors usually would consider a wide range of financial and non-financial determinants. However, finance-driven value is also determined by the specific and unique preferences of a buyer (e.g., in the wider context of portfolio structuring).
The objective of this PhD is to identify value configurations and interactions and develop a framework describing how quantum probability and the interaction between various value fields interact with one another in the real estate industry.
Host Institute: Tallinn University of Technology
Country: Estonia