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

Learning to Generate Ambiguous Sequences

In this paper, we experiment with methods for obtaining binary sequences with a random probability mass function and with low autocorrelation and use it to generate ambiguous outcomes. Outputs from a neural network are mixed and shuffled, resulting in binary sequences whose probability mass function is non-convergent, constantly moving and changing. Empirical comparison with algorithms that generate ambiguity shows that the sequences generated by the proposed method have a significantly lower serial dependence. Therefore, the method is useful in scenarios where observes can see and record the outcome of each draw sequentially, by hindering the ability to make useful statistical inferences

Investment under ambiguity with the best and worst in mind

Recent literature on optimal investment has stressed the difference between the impact of risk and the impact of ambiguity - also called Knightian uncertainty - on investors' decisions. In this paper, we show that a decision maker's attitude towards ambiguity is similarly crucial for investment decisions. We capture the investor's individual ambiguity attitude by applying alpha-MEU preferences to a standard investment problem. We show that the presence of ambiguity often leads to an increase in the subjective project value, and entrepreneurs are more eager to invest. Thereby, our investment model helps to explain differences in investment behavior in situations which are objectively identical

Quantum Experimental Data in Psychology and Economics

We prove a theorem which shows that a collection of experimental data of probabilistic weights related to decisions with respect to situations and their disjunction cannot be modeled within a classical probabilistic weight structure in case the experimental data contain the effect referred to as the 'disjunction effect' in psychology. We identify different experimental situations in psychology, more specifically in concept theory and in decision theory, and in economics (namely situations where Savage's Sure-Thing Principle is violated) where the disjunction effect appears and we point out the common nature of the effect. We analyze how our theorem constitutes a no-go theorem for classical probabilistic weight structures for common experimental data when the disjunction effect is affecting the values of these data. We put forward a simple geometric criterion that reveals the non classicality of the considered probabilistic weights and we illustrate our geometrical criterion by means of experimentally measured membership weights of items with respect to pairs of concepts and their disjunctions. The violation of the classical probabilistic weight structure is very analogous to the violation of the well-known Bell inequalities studied in quantum mechanics. The no-go theorem we prove in the present article with respect to the collection of experimental data we consider has a status analogous to the well known no-go theorems for hidden variable theories in quantum mechanics with respect to experimental data obtained in quantum laboratories. For this reason our analysis puts forward a strong argument in favor of the validity of using a quantum formalism for modeling the considered psychological experimental data as considered in this paper.Comment: 15 pages, 4 figure

Classical Logical versus Quantum Conceptual Thought: Examples in Economics, Decision theory and Concept Theory

Inspired by a quantum mechanical formalism to model concepts and their disjunctions and conjunctions, we put forward in this paper a specific hypothesis. Namely that within human thought two superposed layers can be distinguished: (i) a layer given form by an underlying classical deterministic process, incorporating essentially logical thought and its indeterministic version modeled by classical probability theory; (ii) a layer given form under influence of the totality of the surrounding conceptual landscape, where the different concepts figure as individual entities rather than (logical) combinations of others, with measurable quantities such as 'typicality', 'membership', 'representativeness', 'similarity', 'applicability', 'preference' or 'utility' carrying the influences. We call the process in this second layer 'quantum conceptual thought', which is indeterministic in essence, and contains holistic aspects, but is equally well, although very differently, organized than logical thought. A substantial part of the 'quantum conceptual thought process' can be modeled by quantum mechanical probabilistic and mathematical structures. We consider examples of three specific domains of research where the effects of the presence of quantum conceptual thought and its deviations from classical logical thought have been noticed and studied, i.e. economics, decision theory, and concept theories and which provide experimental evidence for our hypothesis.Comment: 14 page

Reasons and Means to Model Preferences as Incomplete

Literature involving preferences of artificial agents or human beings often assume their preferences can be represented using a complete transitive binary relation. Much has been written however on different models of preferences. We review some of the reasons that have been put forward to justify more complex modeling, and review some of the techniques that have been proposed to obtain models of such preferences

Resolving the Ellsberg Paradox by Assuming that People Evaluate Repetitive Sampling

Ellsberg (1961) designed a decision experiment where most people violated the axioms of rational choice. He asked people to bet on the outcome of certain random events with known and with unknown probabilities. They usually preferred to bet on events with known probabilities. It is shown that this behavior is reasonable and in accordance with the axioms of rational decision making if it is assumed that people consider bets on events that are repeatedly sampled instead of just sampled once

How brains make decisions

This chapter, dedicated to the memory of Mino Freund, summarizes the Quantum Decision Theory (QDT) that we have developed in a series of publications since 2008. We formulate a general mathematical scheme of how decisions are taken, using the point of view of psychological and cognitive sciences, without touching physiological aspects. The basic principles of how intelligence acts are discussed. The human brain processes involved in decisions are argued to be principally different from straightforward computer operations. The difference lies in the conscious-subconscious duality of the decision making process and the role of emotions that compete with utility optimization. The most general approach for characterizing the process of decision making, taking into account the conscious-subconscious duality, uses the framework of functional analysis in Hilbert spaces, similarly to that used in the quantum theory of measurements. This does not imply that the brain is a quantum system, but just allows for the simplest and most general extension of classical decision theory. The resulting theory of quantum decision making, based on the rules of quantum measurements, solves all paradoxes of classical decision making, allowing for quantitative predictions that are in excellent agreement with experiments. Finally, we provide a novel application by comparing the predictions of QDT with experiments on the prisoner dilemma game. The developed theory can serve as a guide for creating artificial intelligence acting by quantum rules.Comment: Latex file, 20 pages, 3 figure

What factors are associated with recent intimate partner violence? findings from the WHO multi-country study on women's health and domestic violence

<p>Abstract</p> <p>Background</p> <p>Intimate partner violence (IPV) against women is a global public health and human rights concern. Despite a growing body of research into risk factors for IPV, methodological differences limit the extent to which comparisons can be made between studies. We used data from ten countries included in the WHO Multi-country Study on Women's Health and Domestic Violence to identify factors that are consistently associated with abuse across sites, in order to inform the design of IPV prevention programs.</p> <p>Methods</p> <p>Standardised population-based household surveys were done between 2000 and 2003. One woman aged 15-49 years was randomly selected from each sampled household. Those who had ever had a male partner were asked about their experiences of physically and sexually violent acts. We performed multivariate logistic regression to identify predictors of physical and/or sexual partner violence within the past 12 months.</p> <p>Results</p> <p>Despite wide variations in the prevalence of IPV, many factors affected IPV risk similarly across sites. Secondary education, high SES, and formal marriage offered protection, while alcohol abuse, cohabitation, young age, attitudes supportive of wife beating, having outside sexual partners, experiencing childhood abuse, growing up with domestic violence, and experiencing or perpetrating other forms of violence in adulthood, increased the risk of IPV. The strength of the association was greatest when both the woman and her partner had the risk factor.</p> <p>Conclusions</p> <p>IPV prevention programs should increase focus on transforming gender norms and attitudes, addressing childhood abuse, and reducing harmful drinking. Development initiatives to improve access to education for girls and boys may also have an important role in violence prevention.</p

Mechanisms of Psychological Distress following War in the Former Yugoslavia: The Role of Interpersonal Sensitivity

This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.This study was funded by a grant from the European Commission, contract number INCO-CT-2004-509176. AN was supported by a Clinical Early Career Research Fellowship (113295) and a Project Grant (104288