A Quantum-Conceptual Explanation of Violations of Expected Utility in Economics

The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage's Sure-Thing Principle. It has been put forward, e.g. by situations such as the Allais and Ellsberg paradoxes, that real-life situations can violate Savage's Sure-Thing Principle and hence also expected utility. We analyze how this violation is connected to the presence of the 'disjunction effect' of decision theory and use our earlier study of this effect in concept theory to put forward an explanation of the violation of Savage's Sure-Thing Principle, namely the presence of 'quantum conceptual thought' next to 'classical logical thought' within a double layer structure of human thought during the decision process. Quantum conceptual thought can be modeled mathematically by the quantum mechanical formalism, which we illustrate by modeling the Hawaii problem situation, a well-known example of the disjunction effect, and we show how the dynamics in the Hawaii problem situation is generated by the whole conceptual landscape surrounding the decision situation.Comment: 9 pages, no figure

Entanglement Zoo II: Examples in Physics and Cognition

We have recently presented a general scheme enabling quantum modeling of different types of situations that violate Bell's inequalities. In this paper, we specify this scheme for a combination of two concepts. We work out a quantum Hilbert space model where 'entangled measurements' occur in addition to the expected 'entanglement between the component concepts', or 'state entanglement'. We extend this result to a macroscopic physical entity, the 'connected vessels of water', which maximally violates Bell's inequalities. We enlighten the structural and conceptual analogies between the cognitive and physical situations which are both examples of a nonlocal non-marginal box modeling in our classification.Comment: 11 page

Vascular Flora of Hooper Branch Savanna Nature Preserve, Iroquois County, Illinois

INHS Technical Report prepared for Illinois Department of Natural Resources, Division of Natural Heritag

Unifying Decision-Making: a Review on Evolutionary Theories on Rationality and Cognitive Biases

In this paper, we make a review on the concepts of rationality across several different fields, namely in economics, psychology and evolutionary biology and behavioural ecology. We review how processes like natural selection can help us understand the evolution of cognition and how cognitive biases might be a consequence of this natural selection. In the end we argue that humans are not irrational, but rather rationally bounded and we complement the discussion on how quantum cognitive models can contribute for the modelling and prediction of human paradoxical decisions

Introducing Quantum-Like Influence Diagrams for Violations of the Sure Thing Principle

It is the focus of this work to extend and study the previously proposed quantum-like Bayesian networks to deal with decision-making scenarios by incorporating the notion of maximum expected utility in influence diagrams. The general idea is to take advantage of the quantum interference terms produced in the quantum-like Bayesian Network to influence the probabilities used to compute the expected utility of some action. This way, we are not proposing a new type of expected utility hypothesis. On the contrary, we are keeping it under its classical definition. We are only incorporating it as an extension of a probabilistic graphical model in a compact graphical representation called an influence diagram in which the utility function depends on the probabilistic influences of the quantum-like Bayesian network. Our findings suggest that the proposed quantum-like influence digram can indeed take advantage of the quantum interference effects of quantum-like Bayesian Networks to maximise the utility of a cooperative behaviour in detriment of a fully rational defect behaviour under the prisoner's dilemma game

Do preferences and beliefs in dilemma games exhibit complementarity?

Blanco et. al. (2014) show in a novel experiment the presence of intrinsic interactions between the preferences and the beliefs of participants in social dilemma games. They discuss the identification of three effects, and we claim that two of them are inherently of non-classical nature. Here, we discuss qualitatively how a model based on complementarity between preferences and beliefs in a Hilbert space can give an structural explanation to two of the three effects the authors observe, and the third one can be incorporated into the model as a classical correlation between the observations in two subspaces. Quantitative formalization of the model and proper fit to the experimental observation will be done in the near future, as we have been given recent access to the original dataset

Towards a quantum probability theory of similarity judgments

We review recent progress in understanding similarity judgments in cognition by means of quantum probability theory (QP) models. We begin by outlining some features of similarity judgments that have proven difficult to model by traditional approaches. We then briefly present a model of similarity judgments based on QP, and show how it can solve many of the problems faced by traditional approaches. Finally we look at some areas where the quantum model is currently less satisfactory, and discuss some open questions and areas for further work

What is Quantum? Unifying Its Micro-Physical and Structural Appearance

We can recognize two modes in which 'quantum appears' in macro domains: (i) a 'micro-physical appearance', where quantum laws are assumed to be universal and they are transferred from the micro to the macro level if suitable 'quantum coherence' conditions (e.g., very low temperatures) are realized, (ii) a 'structural appearance', where no hypothesis is made on the validity of quantum laws at a micro level, while genuine quantum aspects are detected at a structural-modeling level. In this paper, we inquire into the connections between the two appearances. We put forward the explanatory hypothesis that, 'the appearance of quantum in both cases' is due to 'the existence of a specific form of organisation, which has the capacity to cope with random perturbations that would destroy this organisation when not coped with'. We analyse how 'organisation of matter', 'organisation of life', and 'organisation of culture', play this role each in their specific domain of application, point out the importance of evolution in this respect, and put forward how our analysis sheds new light on 'what quantum is'.Comment: 10 page