The Ellsberg paradox: A challenge to quantum decision theory?*
Ali al-Nowaihi () and
Sanjit Dhami ()
No 16/08, Discussion Papers in Economics from Department of Economics, University of Leicester
We set up a simple quantum decision model of the Ellsberg paradox. We find that the matching probabilities that our model predict are in good agreement with those empirically measured by Dimmock et al. (2015). Our derivation is parameter free. It only depends on quantum probability theory in conjunction with the heuristic of insufficient reason. We suggest that much of what is normally attributed to probability weighting might actually be due to quantum probability.
Keywords: Quantum probability; Ellsberg paradox; probability weighting; matching probabilities; projective expected utility; projective prospect theory (search for similar items in EconPapers)
JEL-codes: D03 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:lec:leecon:16/08
Ordering information: This working paper can be ordered from
http://www2.le.ac.uk ... ch/discussion-papers
Access Statistics for this paper
More papers in Discussion Papers in Economics from Department of Economics, University of Leicester Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK. Contact information at EDIRC.
Series data maintained by Mrs. Alexandra Mazzuoccolo (). This e-mail address is bad, please contact .