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