Evolution of quantum-like modeling in decision making processes

The application of the mathematical formalism of quantum mechanics to model behavioral patterns in social science and economics is a novel and constantly emerging field. The aim of the so called 'quantum like' models is to model the decision making processes in a macroscopic setting, capturing the particular 'context' in which the decisions are taken. Several subsequent empirical findings proved that when making a decision people tend to violate the axioms of expected utility theory and Savage's Sure Thing principle, thus violating the law of total probability. A quantum probability formula was devised to describe more accurately the decision making processes. A next step in the development of QL-modeling in decision making was the application of Schrodinger equation to describe the evolution of people's mental states. A shortcoming of Schrodinger equation is its inability to capture dynamics of an open system; the brain of the decision maker can be regarded as such, actively interacting with the external...

[1]  James T. Townsend,et al.  Quantum dynamics of human decision-making , 2006 .

[2]  A. Tversky,et al.  The Disjunction Effect in Choice under Uncertainty , 1992 .

[3]  L. J. Savage,et al.  The Foundations of Statistics , 1955 .

[4]  A. Tversky,et al.  Thinking through uncertainty: Nonconsequential reasoning and choice , 1992, Cognitive Psychology.

[5]  Robert F. Bordley.  Quantum Mechanical and Human Violations of Compound Probability Principles: Toward a Generalized Heisenberg Uncertainty Principle , 1998, Oper. Res..

[6]  Yoshiharu Tanaka,et al.  Quantum-like model of brain's functioning: decision making from decoherence. , 2011, Journal of theoretical biology.

[7]  J. Neumann,et al.  Theory of games and economic behavior , 1945, 100 Years of Math Milestones.

[8]  R. Ingarden,et al.  Information Dynamics and Open Systems: Classical and Quantum Approach , 1997 .

[9]  Joseph P. Zbilut,et al.  Some remarks on an experiment suggesting quantum-like behavior of cognitive entities and formulation of an abstract quantum mechanical formalism to describe cognitive entity and its dynamics , 2007 .

[10]  Roger Penrose,et al.  Shadows of the mind - a search for the missing science of consciousness , 1994 .

[11]  J. Busemeyer,et al.  A quantum probability explanation for violations of ‘rational’ decision theory , 2009, Proceedings of the Royal Society B: Biological Sciences.

[12]  A. Tversky,et al.  Rational choice and the framing of decisions , 1990 .

[13]  Emmanuel Haven,et al.  The quantum-like description of the dynamics of party governance in the US political system , 2012, 1206.2888.

[14]  A. Tversky,et al.  The framing of decisions and the psychology of choice. , 1981, Science.

[15]  Adam Brandenburger,et al.  A classification of hidden-variable properties , 2007, 0711.4650.

[16]  J. Busemeyer,et al.  Introduction to the special issue on quantum cognition , 2009, 1309.5673.

[17]  M. Goovaerts,et al.  A Path Integral Approach to Asset-Liability Management , 2006 .

[18]  A. Tversky,et al.  Judgment under Uncertainty , 1982 .

[19]  Martin Shubik,et al.  Quantum economics, uncertainty and the optimal grid size , 1999 .

[20]  Emmanuel Haven.  Pilot-Wave Theory and Financial Option Pricing , 2005 .

[21]  A. Khrennikov,et al.  Quantum Social Science , 2013 .

[22]  Andrei Khrennikov,et al.  Ubiquitous Quantum Structure , 2010 .

[23]  I. Segal,et al.  The Black-Scholes pricing formula in the quantum context. , 1998, Proceedings of the National Academy of Sciences of the United States of America.

[24]  A. R. Marlow,et al.  Mathematical foundations of quantum theory , 1978 .

[25]  J. Eisert,et al.  Quantum Games and Quantum Strategies , 1998, quant-ph/9806088.

[26]  Croson,et al.  The Disjunction Effect and Reason-Based Choice in Games. , 1999, Organizational behavior and human decision processes.