Related papers: Quantum propensity in economics
Quantum theory provides a comprehensive framework for quantifying uncertainty, often applied in quantum finance to explore the stochastic nature of asset returns. This perspective likens returns to microscopic particle motion, governed by…
This paper demonstrates that some non-classical models of human decision-making can be run successfully as circuits on quantum computers. Since the 1960s, many observed cognitive behaviors have been shown to violate rules based on classical…
Forecasting demand for assets and services can be addressed in various markets, providing a competitive advantage when the predictive models used demonstrate high accuracy. However, the training of machine learning models incurs high…
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…
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…
Quantum theory is used to model secondary financial markets. Contrary to stochastic descriptions, the formalism emphasizes the importance of trading in determining the value of a security. All possible realizations of investors holding…
A school of thought contends that human decision making exhibits quantum-like logic. While it is not known whether the brain may indeed be driven by actual quantum mechanisms, some researchers suggest that the decision logic is…
Based on the analog between the stochastic dynamics and quantum harmonic oscillator, we propose a market force driving model to generalize the Black-Scholes model in finance market. We give new schemes of option pricing, in which we can…
Various effects in human cognition, often considered `non-classical', have been argued to be most naturally modelled by quantum-like models of decision making. We extend this approach to describe models of cognition and decision-making in…
There has been no lack of coverage in the past few years in scientific journals of the topic of quantum computation. Rightly so, as this is a novel idea with--so far--at least one very important practical application (prime factorisation)…
The quantum backflow effect is a counterintuitive behavior of the probability current of a free particle, which may be negative even for states with vanishing negative momentum component. Here we address the notion of nonclassicality…
In this article, we propose to use the formalism of quantum mechanics to describe and explain the so-called "abnormal" behaviour of agents in certain decision or choice contexts. The basic idea is to postulate that the preferences of these…
Physicists use quantum models to describe the behavior of physical systems. Quantum models owe their success to their interpretability, to their relation to probabilistic models (quantization of classical models) and to their high…
We apply methods of quantum mechanics for mathematical modeling of price dynamics at the financial market. We propose to describe behavioral financial factors (e.g., expectations of traders) by using the pilot wave (Bohmian) model of…
We present a new experiment demonstrating destructive interference in customers' estimates of conditional probabilities of product failure. We take the perspective of a manufacturer of consumer products, and consider two situations of cause…
This paper revisits the classic instrument choice problem in a setting with consumption externalities, through the lens of robust mechanism design. A regulator can implement any incentive-compatible policy but is uncertain about how…
In physics, one is often misled in thinking that the mathematical model of a system is part of or is that system itself. Think of expressions commonly used in physics like "point" particle, motion "on the line", "smooth" observables, wave…
This paper introduces economists to quantum-inspired approaches for modeling firm behavior in a Cournot Duopoly, designed for accessibility and pedagogical use. We present key quantum concepts -- superposition, entanglement, and quantum…
We suggest a model of a multi-agent society of decision makers taking decisions being based on two criteria, one is the utility of the prospects and the other is the attractiveness of the considered prospects. The model is the…
When making decisions under risk, people often exhibit behaviors that classical economic theories cannot explain. Newer models that attempt to account for these irrational behaviors often lack neuroscience bases and require the introduction…