Structural Depth and Markets: Price Formation as Structural Fixation

This paper applies the Structural Depth framework to financial markets, interpreting price formation as a process of structural fixation rather than purely stochastic behavior. Market states are modeled as configuration spaces with multiple accessible price paths (path diversity), while trade execution corresponds to a local collapse of this diversity into a single realized state. By reframing volatility, liquidity, and price dynamics in terms of structural constraints and containment transitions, this work provides a new perspective on market behavior as a complex, non-equilibrium system. This paper is part of the Structural Depth series, following "The Structural Depth Law of Time" and "Quantum Mechanics as Structural Fixation". Full framework and related research:https://marketalchemy.io Part of the Structural Depth series: The Structural Depth Law of Timehttps://doi.org/10.5281/zenodo.19071535 Quantum Mechanics as Structural Fixationhttps://doi.org/10.5281/zenodo.19101771