Quantum Structures in Human Decision-making: Towards Quantum Expected Utility

October 29, 2018 Β· Declared Dead Β· πŸ› International Journal of Theoretical Physics

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Authors Sandro Sozzo arXiv ID 1811.00875 Category cs.AI: Artificial Intelligence Cross-listed econ.GN, q-bio.NC, quant-ph Citations 8 Venue International Journal of Theoretical Physics Last Checked 4 months ago
Abstract
{\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 under uncertainty which satisfactorily copes with the Ellsberg paradox and other puzzles of SEUT. We apply here the quantum-theoretic framework to the {\it Ellsberg two-urn example}, showing that the paradox can be explained by assuming a state change of the conceptual entity that is the object of the decision ({\it decision-making}, or {\it DM}, {\it entity}) and representing subjective probabilities by quantum probabilities. We also model the empirical data we collected in a DM test on human participants within the theoretic framework above. The obtained results are relevant, as they provide a line to model real life, e.g., financial and medical, decisions that show the same empirical patterns as the two-urn experiment.
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