Quantum Decision Making

Maria Teresa Cuomo, Pantea Foroudi

Ana Njegovanović

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.

Xiaoyang Xin, Chenhong Xu, Hongyu CHEN +1 more

During the recent decade, quantum decision-making models were established based on the mathematical structure and methodologies of quantum mechanics. Owing to its unique theoretical structure, the quantum decision-making models can be applied to explain problems that violate the classical decision models, especially for judgments under uncertainty and decisions under conflicts. Quantum decision-making models have been used to explain phenomena such as disjunction effect, conjunction fallacy and interference of categorization on decision making which are difficult to account for with classical decision models. A model called quantum question equality has been tested for its accurate prediction of order effects. Being a new research field contributing to analysis of decision making, quantum decision-making models worth further investigations both in theoretical and applicative levels.

Hervé Zwirn C

Michail A. Zak

Shahram Dehdashti, Lauren Fell, Peter Bruza

This article presents a general framework that allows irrational decision making to be theoretically investigated and simulated. Rationality in human decision making under uncertainty is normatively prescribed by the axioms of probability theory in order to maximize utility. However, substantial literature from psychology and cognitive science shows that human decisions regularly deviate from these axioms. Bistable probabilities are proposed as a principled and straight forward means for modeling (ir)rational decision making, which occurs when a decision maker is in "two minds". We show that bistable probabilities can be formalized by positive-operator-valued projections in quantum mechanics. We found that (1) irrational decision making necessarily involves a wider spectrum of causal relationships than rational decision making, (2) the accessible information turns out to be greater in irrational decision making when compared to rational decision making, and (3) irrational decision making is quantum-like because it violates the Bell-Wigner polytope.