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In this article we demonstrate how algorithmic probability theory is applied to situations that involve uncertainty. When people are unsure of their model of reality, then the outcome they observe will cause them to update their beliefs. We…

Artificial Intelligence · Computer Science 2014-05-26 Phil Maguire , Philippe Moser , Rebecca Maguire , Mark Keane

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…

Mathematical Physics · Physics 2017-10-25 F. Bagarello , A. Khrennikov , E. Haven

Quantum decision theory (QDT) is a recently developed theory of decision making based on the mathematics of Hilbert spaces, a framework known in physics for its application to quantum mechanics. This framework formalizes the concept of…

Physics and Society · Physics 2016-12-28 M. Favre , A. Wittwer , H. R. Heinimann , V. I. Yukalov , D. Sornette

We present the first calibration of quantum decision theory (QDT) to a dataset of binary risky choice. We quantitatively account for the fraction of choice reversals between two repetitions of the experiment, using a probabilistic choice…

Artificial Intelligence · Computer Science 2023-03-06 T. Kovalenko , S. Vincent , V. I. Yukalov , D. Sornette

An important but understudied question in economics is how people choose when facing uncertainty in the timing of events. Here we study preferences over time lotteries, in which the payment amount is certain but the payment time is…

Theoretical Economics · Economics 2021-08-20 Yonatan Berman , Mark Kirstein

Difficulties over probability have often been considered fatal to the Everett interpretation of quantum mechanics. Here I argue that the Everettian can have everything she needs from `probability' without recourse to indeterminism,…

Quantum Physics · Physics 2007-05-23 Hilary Greaves

In this paper we consider the problem of inference in statistical models characterized by moment restrictions by casting the problem within the Exponentially Tilted Empirical Likelihood (ETEL) framework. Because the ETEL function has a well…

Methodology · Statistics 2017-04-10 Siddhartha Chib , Minchul Shin , Anna Simoni

We present a general theory of quantum information processing devices, that can be applied to human decision makers, to atomic multimode registers, or to molecular high-spin registers. Our quantum decision theory is a generalization of the…

Quantum Physics · Physics 2009-11-13 V. I. Yukalov , D. Sornette

We propose the use of the hypothetical retrospection argumentation procedure, developed by Sven Ove Hansson to improve existing approaches to machine ethical reasoning by accounting for probability and uncertainty from a position of…

Artificial Intelligence · Computer Science 2023-07-13 Simon Kolker , Louise Dennis , Ramon Fraga Pereira , Mengwei Xu

This paper presents a general and efficient framework for probabilistic inference and learning from arbitrary uncertain information. It exploits the calculation properties of finite mixture models, conjugate families and factorization. Both…

Artificial Intelligence · Computer Science 2011-05-19 M. C. Garrido , P. E. Lopez-de-Teruel , A. Ruiz

The dominant practice of AI alignment assumes (1) that preferences are an adequate representation of human values, (2) that human rationality can be understood in terms of maximizing the satisfaction of preferences, and (3) that AI systems…

Artificial Intelligence · Computer Science 2024-11-12 Tan Zhi-Xuan , Micah Carroll , Matija Franklin , Hal Ashton

Noncooperative games with uncertain payoffs have been classically studied under the expected-utility theory framework, which relies on the strong assumption that agents behave rationally. However, simple experiments on human decision makers…

Computer Science and Game Theory · Computer Science 2025-08-14 Ashok Krishnan K. S. , Hélène Le Cadre , Ana Bušić

We consider a decision maker who is unaware of objects to be sampled and thus cannot form beliefs about the occurrence of particular objects. Ex ante she can form beliefs about the occurrence of novelty and the frequencies of yet to be…

Theoretical Economics · Economics 2025-02-21 Burkhard C. Schipper

This paper builds a rule for decisionmaking from the physical behavior of single neurons, the well established neural circuitry of mutual inhibition, and the evolutionary principle of natural selection. No axioms are used in the derivation…

Theoretical Economics · Economics 2023-02-21 Valdes Salvador , Gonzalo ValdesEdwards

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'…

Physics and Society · Physics 2013-01-08 Diederik Aerts , Sandro Sozzo

Human-centered systems of systems such as social networks, Internet of Things, or healthcare systems are growingly becoming major facets of modern life. Realistic models of human behavior in such systems play a significant role in their…

Physics and Society · Physics 2022-01-28 Aghdas. Meghdadi , M. R. Akbarzadeh-T. , Kourosh Javidan

We discuss how the apparently objective probabilities predicted by quantum mechanics can be treated in the framework of Bayesian probability theory, in which all probabilities are subjective. Our results are in accord with earlier work by…

Quantum Physics · Physics 2009-11-11 Mark Srednicki

Motivation: Recent work has demonstrated the feasibility of using non-numerical, qualitative data to parameterize mathematical models. However, uncertainty quantification (UQ) of such parameterized models has remained challenging because of…

Methodology · Statistics 2019-09-04 Eshan D. Mitra , William S. Hlavacek

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…

Optimization and Control · Mathematics 2026-03-24 Roger J. A. Laeven , Mitja Stadje

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…

Neurons and Cognition · Quantitative Biology 2018-07-18 Irina Basieva , Andrei Khrennikov