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

  • Sandro SozzoEmail author
Article
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Abstract

Ellsberg thought experiments and empirical confirmation of Ellsberg preferences pose serious challenges to 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 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 (decision-making, or DM, 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.

Keywords

Expected utility Ellsberg paradox Uncertainty Quantum structures Quantum probability 

Notes

Acknowledgments

The author is greatly indebted with Prof. Diederik Aerts and Dr. Massimiliano Sassoli de Bianchi for reading the manuscript and providing a number of valuable comments and suggestions for improvement.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.School of Business and IQSCSUniversity of LeicesterLeicesterUK

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