Testing Ambiguity and Machina Preferences within a Quantum-theoretic Framework for Decision-making

The Machina thought experiments pose to major non-expected utility models challenges that are similar to those posed by the Ellsberg thought experiments to subjective expected utility theory (SEUT). We test human choices in the ‘Ellsberg three-color example’, confirming typical ambiguity aversion patterns, and the ‘Machina 50/51 and reflection examples’, partially confirming the preferences hypothesized by Machina. Then, we show that a quantum-theoretic framework for decision-making under uncertainty recently elaborated by some of us allows faithful modeling of the collected data. In the quantum-theoretic framework, subjective probabilities are represented by quantum probabilities, while quantum state transformations enable representations of ambiguity aversion and subjective attitudes toward it.

Jaar van publicatie:2018

Trefwoorden:Ambiguity aversion, Expected utility theory, Machina paradox, Quantum probability, Quantum structures

BOF-keylabel:ja

BOF-publication weight:0.1

CSS-citation score:2

Auteurs:International

Authors from:Higher Education

Toegankelijkheid:Closed