Related papers: Risk, ambiguity and quantum decision theory
Dynamics of a particle is formulated from classical principles that are amended by the uncertainty principle. Two best known quantum effects: interference and tunneling are discussed from these principles. It is shown that identical to…
We develop a new formalism for constructing probabilities associated to the causal ordering of events in quantum theory, where by an event we mean the emergence of a measurement record on a detector. We start with constructing probabilities…
Expected utility theory (EUT) is widely used in economic theory. However, its subjective probability formulation, first elaborated by Savage, is linked to Ellsberg-like paradoxes and ambiguity aversion. This has led various scholars to work…
In this paper, we introduce a new model of selection behavior under risk that describes an essential cognitive process for comparing values of objects and making a selection decision. This model is constructed by the quantum-like approach…
This paper shows how the classical finite probability theory (with equiprobable outcomes) can be reinterpreted and recast as the quantum probability calculus of a pedagogical or "toy" model of quantum mechanics over sets (QM/sets). There…
One of quantum theory's salient features is its apparent indeterminism, i.e. measurement outcomes are typically probabilistic. We formally define and address whether this uncertainty is unavoidable or whether post-quantum theories can offer…
A number of phenomena generally believed characteristic of quantum mechanics and seen as interpretively problematic--the incompatibility and value-indeterminacy of variables, the non-existence of dispersion-free states, the failure of the…
Physics is based on probabilities as fundamental entities of a mathematical description. Expectation values of observables are computed according to the classical statistical rule. The overall probability distribution for one world covers…
We present the mathematical model of decision making (DM) of agents acting in a complex and uncertain environment (combining huge variety of economical, financial, behavioral, and geo-political factors). To describe interaction of agents…
Quantum decision theory is introduced here, and new basis for this theory is proposed. It is first based upon the author's general arguments for the Hilbert space formalism in quantum theory, next on arguments for the Born rule, that is,…
In classical physics, probabilistic or statistical knowledge has been always related to ignorance or inaccurate subjective knowledge about an actual state of affairs. This idea has been extended to quantum mechanics through a completely…
This paper introduces a space of variable lotteries and proves a constructive version of the expected utility theorem. The word ``constructive'' is used here in two senses. First, as in constructive mathematics, the logic underlying proofs…
Quantum theory is formulated as the uniquely consistent way to manipulate probability amplitudes. The crucial ingredient is a consistency constraint: if the amplitude of a quantum process can be computed in two different ways, the two…
This article deals with the problem of the uncertainty in rule-based systems (RBS), but from the perspective of quantum computing (QC). In this work we first remember the characteristics of Quantum Rule-Based Systems (QRBS), a concept…
We consider the psychological effect of preference reversal and show that it finds a natural explanation in the frame of quantum decision theory. When people choose between lotteries with non-negative payoffs, they prefer a more certain…
This paper addresses the central question of what a coherent concept of probability might look like that would do justice to both classical probability theory, axiomatized by Kolmogorov, and quantum theory. At a time when quanta are…
The applications of techniques from statistical (and classical) mechanics to model interesting problems in economics and finance has produced valuable results. The principal movement which has steered this research direction is known under…
Quantum theory encounters a difficulty when attempting to describe recording devices. If the recording is of events in which quantum uncertainty plays a role, such as an experiment on a quantum system, quantum theory is unable to correctly…
In this paper, we establish a mathematical duality between utility transforms and probability distortions. These transforms play a central role in decision under risk by forming the foundation for the classic theories of expected utility,…
Quantum theory is a probabilistic theory with fixed causal structure. General relativity is a deterministic theory but where the causal structure is dynamic. It is reasonable to expect that quantum gravity will be a probabilistic theory…