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- Title
Dynamic consistency of expected utility under non-classical (quantum) uncertainty.
- Authors
Danilov, V. I.; Lambert-Mogiliansky, A.; Vergopoulos, V.
- Abstract
Quantum cognition in decision making is a recent and rapidly growing field. In this paper, we develop an expected utility theory in a context of non-classical (quantum) uncertainty. We replace the classical state space with a Hilbert space which allows introducing the concept of quantum lottery. Within that framework, we formulate axioms on preferences over quantum lotteries to establish a representation theorem. We show that demanding the consistency of choice behavior conditional on new information is equivalent to the von Neumann-Lüders postulate applied to beliefs. A dynamically consistent quantum-like agent may violate dynamic recursive consistency, however. This feature suggests interesting applications in behavioral economics as we illustrate in an example of persuasion.
- Subjects
COGNITIVE consistency; EXPECTED utility; DECISION making; HILBERT space; AXIOMS; NONCLASSICAL mathematical logic
- Publication
Theory & Decision, 2018, Vol 84, Issue 4, p645
- ISSN
0040-5833
- Publication type
Article
- DOI
10.1007/s11238-018-9659-7