Quantum Model of Decision-Making in Economics

Quantum Model of Decision-Making in Economics

The paper designs a quantum model of decision-making (QMDM) that utilizes neuroscientific evidence. The new model provides both normative and positive implications to economics. First, it enhances the study of decision-making which is an extension of the expected utility theory (EUT) in mathematical economics. Second, we demonstrate how the quantum model mitigates drawbacks of the expected util...

A quantum dynamic belief decision making model

The sure thing principle and the law of total probability are basic laws in classic probability theory. A disjunction fallacy leads to the violation of these two classical probability laws. In this paper, a new quantum dynamic belief decision making model based on quantum dynamic modelling and DempsterShafer (D-S) evidence theory is proposed to address this issue and model the real human decisi...

Experimental Economics and Political Decision Making

In this paper we characterize firms’ lifetimes and their determinants. Unlike previous studies that use a cohort of new entrants with a short follow-up period, our dataset comprises a representative sample of the population of Spanish manufacturing firms in 1990, followed until 2000. The data were drawn from the annual survey Encuesta sobre Estrategias Empresariales. Our results suggest that fi...

Quantum-like model of cognitive decision making and information processing

In this paper we offer the quantum-like (QL) representation of the Shafir-Tversky statistical effect which is well known in cognitive psychology. We apply the so-called contextual approach. We consider the Shafir-Tversky effect to result from mixing statistical data obtained in incompatible contexts which are involved, e.g. in Prisoner's Dilemma or in more general games in which the disjunction...

An AHP-Delphi Multi-Criteria Decision Making Model with Application to Environmental Decision-Making