In this paper we present several questions: can we use quantum theory in financial decision making? Is there a way that quantum theory influences financial decision-making in terms of risk and uncertainty? What are the relations of quantum theory of decision-making and the role of prefrontal cortex and emotion in the conditions of risk and uncertainty? Perhaps there are already answers to these questions, perhaps they are already answered or need further research and development in the participation of financial decision-making in the conditions of risk and uncertainty in quantum theory of decision-making. Expanding on the role of prefrontal cortex and emotion work seeks to provide a consistent and integrated view of the complexity of financial decision-making in the conditions of risk and uncertainty. This study combines various scientific disciplines, concepts and mathematical (classical financial mathematics-based on the theory of stochastic processes) of the financial decision-making structure in terms of risk and uncertainty. One of the key factors in making financial decisions that lead to quantum dynamics is risk, uncertainty and emotion. The quantum decision theory were developed based on the mathematical techniques of complex Hilbert spaces through composite perspective lattices. Quantum decisional theory analyzes the decision-making process and types of dynamic inconsistency, quantum approaches to decision-making in the conditions of risk and uncertainty, taking Allais paradox and reinterpretation not on the subject's side but on the side of the observer (Allais paradox concerning the quantum measurement problem and the effect of the observer). Relationships between financial decision-making in risk and uncertainty and prefrontal cortex (frontal, cingulate parietal cortex, and striatum and emotion) show the motives of rational / irrational financial decision-making. Financial decision-making explains theoretical foundations (from the aspect of traditional economy) while neuroscience considers physiological aspects and somatic variables that influence financial decision-making.
In this paper we present several questions: can we use quantum theory in financial decision making? Is there a way that quantum theory influences financial decision-making in terms of risk and uncertainty? What are the relations of quantum theory of decision-making and the role of prefrontal cortex and emotion in the conditions of risk and uncertainty? Perhaps there are already answers to these questions, perhaps they are already answered or need further research and development in the participation of financial decision-making in the conditions of risk and uncertainty in quantum theory of decision-making. Expanding on the role of prefrontal cortex and emotion work seeks to provide a consistent and integrated view of the complexity of financial decision-making in the conditions of risk and uncertainty. This study combines various scientific disciplines, concepts and mathematical (classical financial mathematics-based on the theory of stochastic processes) of the financial decision-making structure in terms of risk and uncertainty. One of the key factors in making financial decisions that lead to quantum dynamics is risk, uncertainty and emotion. The quantum decision theory were developed based on the mathematical techniques of complex Hilbert spaces through composite perspective lattices. Quantum decisional theory analyzes the decision-making process and types of dynamic inconsistency, quantum approaches to decision-making in the conditions of risk and uncertainty, taking Allais paradox and reinterpretation not on the subject's side but on the side of the observer (Allais paradox concerning the quantum measurement problem and the effect of the observer). Relationships between financial decision-making in risk and uncertainty and prefrontal cortex (frontal, cingulate parietal cortex, and striatum and emotion) show the motives of rational / irrational financial decision-making. Financial decision-making explains theoretical foundations (from the aspect of traditional economy) while neuroscience considers physiological aspects and somatic variables that influence financial decision-making.
This paper focuses on the study of the functional relationships between the tools of neuroscience, neurofinance and psychology on the one hand, and quantum physics / quantum mechanics and neurophysiology on the other. Can physics / quantum mechanics help explain / understand human behavior through the Shrödinger cat platform (perhaps we can explain the most mysterious phenomena: human behavior - cerebral secretion?)? The concepts of quantum mechanics allow a good prediction of human decision making within Schrödinger's cat (two particles can talk to each other even at a distance of a galaxy, perhaps in this sense can help explain an extremely complex decision making system), and define the "connection of quantum models with neurophysiological processes in the brain “... which is a very complex problem.” (Haven and Khrennikov) The application of quantum physics and neuroscience in finance allows us to consider the complexity of financial decision making, while the connection between quantum physics and psychology manifests itself as the field of quantum physics seeks to understand the fundamental nature of particles. while the field of psychology seeks to explain human nature along with its inherent misconceptions.If decision-making is a process of gathering evidence in favor of different alternatives over time, the process is discontinued once the decision limit is reached, followed by choice of decision. e activity within the posterior parietal cortex several important questions remain unanswered. Neural mechanisms that support the accumulation of evidence record the activities of individual neurons in different parts of the prefrontal cortex (PFC) and the lateral intraparietal area (LIP).
This paper focuses on the study of the functional relationships between the tools of neuroscience, neurofinance and psychology on the one hand, and quantum physics / quantum mechanics and neurophysiology on the other. Can physics / quantum mechanics help explain / understand human behavior through the Shrödinger cat platform (perhaps we can explain the most mysterious phenomena- human behavior - cerebral secretion?)? The concepts of quantum mechanics allow a good prediction of human decision making within Schrödinger's cat (two particles can talk to each other even at a distance of a galaxy, perhaps in this sense can help explain an extremely complex decision making system), and define the "connection of quantum models with neurophysiological processes in the brain “... which is a very complex problem.†(Haven and Khrennikov) The application of quantum physics and neuroscience in finance allows us to consider the complexity of financial decision making, while the connection between quantum physics and psychology manifests itself as the field of quantum physics seeks to understand the fundamental nature of particles. while the field of psychology seeks to explain human nature along with its inherent misconceptions.If decision-making is a process of gathering evidence in favor of different alternatives over time, the process is discontinued once the decision limit is reached, followed by choice of decision. e activity within the posterior parietal cortex several important questions remain unanswered. Neural mechanisms that support the accumulation of evidence record the activities of individual neurons in different parts of the prefrontal cortex (PFC) and the lateral intraparietal area (LIP).
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.
As it has served as a basement for all sciences Newtonian Physics has served for Economics as well. Consequently Newtonian causality appeared as economic determinism in economic theory. Recently quantum physics called into question the philosophy of determinism and focused on possibility rather than certainty. Decision making under risk and uncertainty has been reviewed by scientists from different disciplines. Since it is revealed that individual behavior contradicts with the basic tenets of the theory; economists, psychologists, neurologists and physicists have devoted much to better understand the basic motives underlying irrational behavior. This study adapts quantum approach to decision making under risk considering Allais Paradox and reinterpret it not from the side of the subject but from the side of the observer. In this way it is aimed to reconsider Allais Paradox referring to quantum measurement problem and the observer effect.
Introduction. Modern financial science increasingly faces a paradox: classical models based on deterministic assumptions fail to adequately describe the nonlinearity and uncertainty of public decision-making. In this context, the quantum paradigm of thinking, originally developed in physics, is becoming increasingly relevant as it gradually penetrates the fields of economics and finance. Problem Statement. In contemporary academic discourse, growing attention is being paid to the integration of the principles of quantum logic into socio-economic systems. Traditional financial science rests upon classical macroeconomic determinants that assume linearity, causal determinacy, and parameter stability. However, in the modern world – characterized by high uncertainty, dynamic crises, and global financial fluctuations – such logic proves insufficient. Therefore, there is a pressing need to employ quantum logic as a modern cognitive and analytical paradigm that enables the comprehension of the essence and structure of public finance through the prism of nonlinear, stochastic, and interrelated phenomena and processes. Purpose is to establish a theoretical and methodological foundation for applying quantum principles in the domain of public finance and to identify directions for their practical implementation. Methods. To obtain the scientific results presented in the article, the following methods were employed: methods of quantum logic, synthesis and analysis, deduction and induction, an abstract-logical method of “negation of negations” in financial decision-making, and theoretical generalization to define the nature of quantum finance. Results. The article reveals the potential for interpreting key principles of quantum physics within the system of public finance. A dual-level research framework is proposed, combining methodological analogies between quantum and financial processes with the practical application of quantum models in state financial management. It is demonstrated that the concepts of uncertainty, superposition, and coherence allow for a deeper understanding of the nature of budgetary decisions, tax expectations, debt imbalances, and behavioral effects in the public sphere. Conclusions. Quantum logic crystallizes a methodological framework for modern public finance capable of accounting for the complexity, uncertainty, and interconnectivity of global transformations, hybrid wars, and the contemporary economy. The application of quantum paradigms makes it possible to construct dynamic, probabilistic models of financial policy that significantly surpass the capacities of classical deterministic methods and open new perspectives for scientifically grounded public governance in the field of public finance.
A survey is given summarizing the state of the art of describing information processing in Quantum Decision Theory, which has been recently advanced as a novel variant 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 intended actions. The theory characterizes entangled decision making, non-commutativity of subsequent decisions, and intention interference. The self-consistent procedure of decision making, in the frame of the quantum decision theory, takes into account both the available objective information as well as subjective contextual effects. This quantum approach avoids any paradox typical of classical decision theory. Conditional maximization of entropy, equivalent to the minimization of an information functional, makes it possible to connect the quantum and classical decision theories, showing that the latter is the limit of the former under vanishing interference terms.