# Testing Ambiguity and Machina Preferences Within a Quantum-theoretic Framework for Decision-making

## TL;DR

This paper demonstrates that a quantum-theoretic framework can accurately model human decision-making behaviors in ambiguity and Machina paradox situations, extending the understanding of preferences under uncertainty.

## Contribution

It introduces a quantum-theoretic approach to model ambiguity and Machina preferences, successfully fitting experimental data where traditional models struggle.

## Key findings

- Quantum probabilities model ambiguity aversion effectively.
- The framework captures preferences in Ellsberg and Machina experiments.
- Experimental data aligns with quantum-theoretic predictions.

## Abstract

The Machina thought experiments pose to major non-expected utility models challenges that are similar to those posed by the Ellsberg thought experiments to subjective expected utility theory (SEUT). We test human choices in the `Ellsberg three-color example', confirming typical ambiguity aversion patterns, and the `Machina 50/51 and reflection examples', partially confirming the preferences hypothesized by Machina. Then, we show that a quantum-theoretic framework for decision-making under uncertainty recently elaborated by some of us allows faithful modeling of all data on the Ellsberg and Machina paradox situations. In the quantum-theoretic framework subjective probabilities are represented by quantum probabilities, while quantum state transformations enable representations of ambiguity aversion and subjective attitudes toward it.