A Quantum Model for the Ellsberg and Machina Paradoxes

The Ellsberg and Machina paradoxes reveal that expected utility theory is problematical when real subjects take decisions under uncertainty. Suitable generalizations of expected utility exist which attempt to solve the Ellsberg paradox, but none of them provides a satisfactory solution of the Machin...

Full description

Saved in:
Bibliographic Details
Published inQuantum Interaction Vol. 7620; pp. 48 - 59
Main Authors Aerts, Diederik, Sozzo, Sandro, Tapia, Jocelyn
Format Book Chapter
LanguageEnglish
Published Germany Springer Berlin / Heidelberg 2012
Springer Berlin Heidelberg
SeriesLecture Notes in Computer Science
Subjects
Algorithms & data structures
ambiguity aversion
Computer science
Ellsberg paradox
Machina paradox
quantum modeling
User interface design & usability
Online AccessGet full text
ISBN3642356583
9783642356582
ISSN0302-9743
1611-3349
DOI10.1007/978-3-642-35659-9_5

Cover

More Information
Summary:The Ellsberg and Machina paradoxes reveal that expected utility theory is problematical when real subjects take decisions under uncertainty. Suitable generalizations of expected utility exist which attempt to solve the Ellsberg paradox, but none of them provides a satisfactory solution of the Machina paradox. In this paper we elaborate a quantum model in Hilbert space describing the Ellsberg situation and also the Machina situation, and show that we can model the specific aspect of the Machina situation that is unable to be modeled within the existing generalizations of expected utility.
ISBN:3642356583
9783642356582
ISSN:0302-9743
1611-3349
DOI:10.1007/978-3-642-35659-9_5