Related papers: Quantum Structure in Economics: The Ellsberg Parad…
Quantum cognition in decision-making is a recent and rapidely growing field. In this paper we develop an expected utility theory in a context of non-classical (quantum) uncertainty. We replace the classical state space with a Hilbert space…
We present a novel variant of decision making based on the mathematical theory of separable Hilbert spaces. This mathematical structure captures the effect of superposition of composite prospects, including many incorporated intentions,…
Traditional cognitive science rests on a foundation of classical logic and probability theory. This foundation has been seriously challenged by several findings in experimental psychology on human decision making. Meanwhile, the formalism…
Quantum cognition often explains order effects, contextuality, and violations of the law of total probability by replacing classical probability with quantum probability on a fixed event structure. This paper proposes a different…
The von Neumann and Morgenstern theory postulates that rational choice under uncertainty is equivalent to maximization of expected utility (EU). This view is mathematically appealing and natural because of the affine structure of the space…
We explain the quantum structure as due to the presence of two effects, (a) a real change of state of the entity under influence of the measurement and, (b) a lack of knowledge about a deeper deterministic reality of the measurement…
Einstein's article on the EPR paradox is the most cited of his works, but not many know that it was not fully representative of the way he thought about the incompleteness of the quantum formalism. Indeed, his main worry was not…
This paper describes an approach to economics that is inspired by quantum computing, and is motivated by the need to develop a consistent quantum mathematical framework for economics. The traditional neoclassical approach assumes that…
The broader scope of our investigations is the search for the way in which concepts and their combinations carry and influence meaning and what this implies for human thought. More specifically, we examine the use of the mathematical…
This paper is motivated by the questions of how to give the concept of probability an adequate real-world meaning, and how to explain a certain type of phenomenon that can be found, for instance, in Ellsberg's paradox. It attempts to answer…
We conduct an incentivized experiment on a nationally representative US sample \\ (N=708) to test whether people prefer to avoid ambiguity even when it means choosing dominated options. In contrast to the literature, we find that 55\% of…
The relationship between expectation and price is commonly established with two principles: no-arbitrage, which asserts that both maps are positive; and equivalence, which asserts that the maps share the same null events. Constructed from…
In the given work the first attempt to generalize quantum uncertainty relation on macro objects is made. Business company as one of economical process participants was chosen by the authors for this purpose. The analogies between quantum…
This paper axiomatizes, in a two-stage setup, a new theory for decision under risk and ambiguity. The axiomatized preference relation $\succeq$ on the space $\tilde{V}$ of random variables induces an ambiguity index $c$ on the space…
In this paper we extend Savage's theory of decision-making under uncertainty from a classical environment into a non-classical one. We formulate the corresponding axioms and provide representation theorems for qualitative measures and…
As we know, there is a controversy about the decision making under risk between economists and psychologists. We discuss to build a unified theory of risky choice, which would explain both of compensatory and non-compensatory theories. For…
This Chapter develops a realist information-theoretic interpretation of the nonclassical features of quantum probabilities. On this view, what is fundamental in the transition from classical to quantum physics is the recognition that…
The disjunction effect in human decision making is often taken to show that the classical law of total probability is violated, motivating quantum-like models. We re-examine this claim for the Prisoner's Dilemma disjunction effect. Under…
Probabilistic graphical models such as Bayesian Networks are one of the most powerful structures known by the Computer Science community for deriving probabilistic inferences. However, modern cognitive psychology has revealed that human…
In this paper we analyse some of the classical paradoxes in Social Choice Theory (namely, the Condorcet paradox, the discursive dilemma, the Ostrogorski paradox and the multiple election paradox) using a general framework for the study of…