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Dynamic consistency of expected utility under non-classical (quantum) uncertainty

Vladimir Danilov (), Ariane Lambert-Mogiliansky () and V. Vergopoulos ()
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V. Vergopoulos: Université Paris 1 Panthéon-Sorbonne and Paris School of Economics

Theory and Decision, 2018, vol. 84, issue 4, No 8, 645-670

Abstract: 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.

Keywords: Quantum lottery; Decision-making; Uncertainty; Dynamic consistency (search for similar items in EconPapers)
Date: 2018
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Related works:
Working Paper: Dynamic consistency of expected utility under non-classical (quantum) uncertainty (2018)
Working Paper: Dynamic consistency of expected utility under non-classical (quantum) uncertainty (2018)
Working Paper: Dynamic consistency of expected utility under non-classical (quantum) uncertainty (2018)
Working Paper: Dynamic consistency of expected utility under non-classical(quantum) uncertainty (2016) Downloads
Working Paper: Dynamic consistency of expected utility under non-classical(quantum) uncertainty (2016) Downloads
Working Paper: Dynamic consistency of expected utility under non-classical(quantum) uncertainty (2016) Downloads
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DOI: 10.1007/s11238-018-9659-7

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