Quantum Decision Theory

TL;DR

This paper introduces a quantum formalism to model decision-making, suggesting that agents' preferences are indeterminate until a choice is made, which explains certain paradoxical behaviors like framing effects.

Contribution

It applies quantum mechanics principles to decision theory, proposing that preferences are superpositions that collapse upon decision, offering a novel explanation for anomalous decision behaviors.

Findings

Quantum formalism models preference indeterminacy.

Explains framing effects through preference superpositions.

Offers new insights into decision-making anomalies.

Abstract

In this article, we propose to use the formalism of quantum mechanics to describe and explain the so-called "abnormal" behaviour of agents in certain decision or choice contexts. The basic idea is to postulate that the preferences of these agents are indeterminate (in the quantum sense of the term) before the choice is made or the decision is taken. An agent's state before the decision is represented by a superposition of potential preferences. The decision is assimilated to a measure of the agent's state and leads to a projection of the state onto one of the particular preferences. We therefore consider that uncertainty about preferences is not linked to incomplete information but to essential indeterminacy. We explore the consequences of these hypotheses on the usual concepts of decision theory and apply the formalism to the problem of the so-called "framing" effect.