Related papers: A Generalized Probability Framework to Model Econo…
We provide here a general mathematical framework to model attitudes towards ambiguity which uses the formalism of quantum theory as a ``purely mathematical formalism, detached from any physical interpretation''. We show that the…
The 'expected utility hypothesis' and 'Savage's Sure-Thing Principle' are violated in real life decisions, as shown by the 'Allais' and 'Ellsberg paradoxes'. The popular explanation in terms of 'ambiguity aversion' is not completely…
Econophysics has developed as a research field that applies the formalism of Statistical Mechanics and Quantum Mechanics to address Economics and Finance problems. The branch of Econophysics that applies of Quantum Theory to Economics and…
Uncertainty in economics still poses some fundamental problems illustrated, e.g., by the Allais and Ellsberg paradoxes. To overcome these difficulties, economists have introduced an interesting distinction between 'risk' and 'ambiguity'…
Ambiguity and ambiguity aversion have been widely studied in decision theory and economics both at a theoretical and an experimental level. After Ellsberg's seminal studies challenging subjective expected utility theory (SEUT), several…
Empirical evidence has confirmed that quantum effects occur frequently also outside the microscopic domain, while quantum structures satisfactorily model various situations in several areas of science, including biological, cognitive and…
The recent crash demonstrated (once again) that the description of the financial market by present financial mathematics cannot be considered as totally satisfactory. We remind that nowadays financial mathematics is heavily based on the use…
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…
Despite the impressive success of quantum structures to model long-standing human judgement and decision puzzles, the {\it quantum cognition research programme} still faces challenges about its explanatory power. Indeed, quantum models…
Kolmogorov's foundation of probability takes measure spaces, $\sigma$-algebras, and probability measures as basic objects. It is, however, widely recognized that this classical framework is inadequate for random phenomena involving quantum…
We present the fundamentals of the quantum theoretical approach we have developed in the last decade to model cognitive phenomena that resisted modeling by means of classical logical and probabilistic structures, like Boolean, Kolmogorovian…
Recently the mathematical formalism of quantum mechanics, especially methods of quantum probability theory, started to be widely used in a variety of applications outside of physics, e.g., cognition and psychology as well as economy and…
{\it Ellsberg thought experiments} and empirical confirmation of Ellsberg preferences pose serious challenges to {\it subjective expected utility theory} (SEUT). We have recently elaborated a quantum-theoretic framework for human decisions…
A quantum probability model is introduced and used to explain human probability judgment errors including the conjunction, disjunction, inverse, and conditional fallacies, as well as unpacking effects and partitioning effects. Quantum…
Behavioural economics provides labels for patterns in human economic behaviour. Probability weighting is one such label. It expresses a mismatch between probabilities used in a formal model of a decision (i.e. model parameters) and…
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…
We attempt to contribute some novel points of view to the "foundations of quantum mechanics", using mathematical tools from "quantum probability theory" (such as the theory of operator algebras). We first introduce an abstract algebraic…
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…
We compare the classical Kolmogorov and quantum probability models. We show that the gap between these model is not so huge as it was commonly believed. The main structures of quantum theory (interference of probabilities, Born's rule,…
The Machina thought experiments pose to major non-expected utility models challenges that are similar to those posed by the Ellsberg thought experiments to subjective expected utility theory (SEUT). We test human choices in the `Ellsberg…