A quantum-like description of human decision process is developed, and a heuristic argument supporting the theory as sound phenomenology is given. It is shown to be capable of quantitatively explaining the conjunction fallacy in the same footing as the violation of sure-thing principle.
One of the most complex systems is the human brain whose formalized functioning is characterized by decision theory. We present a "Quantum Decision Theory" 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, which allows us to explain a variety of interesting fallacies and anomalies that have been reported to particularize the decision-making of real human beings. The theory describes entangled decision-making, non-commutativity of subsequent decisions, and intention interference of composite prospects. We demonstrate how the violation of the Savage's sure-thing principle (disjunction effect) can be explained as a result of the interference of intentions, when making decisions under uncertainty. The conjunction fallacy is also explained by the presence of the interference terms. We demonstrate that all known anomalies and paradoxes, documented in the context of classical decision theory, are reducible to just a few mathematical archetypes, all of which allow the finding of straightforward explanations in the frame of the developed quantum approach.
How can we use quantum theory to model other phenomena of interest to researchers in cognition and decision making? Quantum theory is not easy for researchers in cognition and decision making to accept. In fact, quantum mechanics was not easy for physicists to accept either, but it was forced on them by several paradoxical findings that could not be explained using classical physics. We have a similar problem in cognition and decision making – there are numerous paradoxical findings that just seem irrational according to classic probability theory. For example, under some conditions, people judge the probability of event A and B to be greater than the probability of event B , which is called the conjunction fallacy (Tversky & Kahneman, 1983). Also, under the same conditions, they judge the probability of A or B to be less than the probability of event A (Carlson & Yates, 1989), which is called the disjunction fallacy. In this chapter we examine how quantum probability theory explains these and other puzzling results from human probability judgment research. This chapter has two main parts. In the first part, we use a quantum model to derive qualitative predictions for conjunction errors, disjunction errors, and other closely related findings. The first section provides a general set of predictions that do not depend on specific assumptions about the features used to represent events, and the predictions are parameter free. In the second part, we examine the quantitative predictions of the quantum model for a Bayesian inference task, which we use to explain order effects on inference.
Two experimental tasks in psychology, the two-stage gambling game and the Prisoner's Dilemma game, show that people violate the sure thing principle of decision theory. These paradoxical findings have resisted explanation by classical decision theory for over a decade. A quantum probability model, based on a Hilbert space representation and Schrödinger's equation, provides a simple and elegant explanation for this behaviour. The quantum model is compared with an equivalent Markov model and it is shown that the latter is unable to account for violations of the sure thing principle. Accordingly, it is argued that quantum probability provides a better framework for modelling human decision-making.
Uncertainty is an intrinsic part of life; most events, affairs, and questions are uncertain. A key problem in behavioral sciences is how the mind copes with uncertain information. Quantum probability theory offers a set of principles for inference, which align well with intuition about psychological processes in certain cases: cases when it appears that inference is contextual, the mental state changes as a result of previous judgments, or there is interference between different possibilities. We motivate the use of quantum theory in cognition and its key characteristics. For each of these characteristics, we review relevant quantum cognitive models and empirical support. The scope of quantum cognitive models encompasses fallacies in decision-making (such as the conjunction fallacy or the disjunction effect), question order effects, conceptual combination, evidence accumulation, perception, over-/underdistribution effects in memory, and more. Quantum models often formalize psychological ideas previously expressed in heuristic terms, allow unified explanations of previously disparate findings, and have led to several surprising, novel predictions. We also cast a critical eye on quantum models and consider some of their shortcomings and issues regarding their further development.