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Type indeterminacy - A Model of the KT(Khaneman Tversky)- Man

Author

Listed:
  • Ariane Lambert-Mogiliansky

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Schmuel Zamir

    (Center for the Study of Rationality - Hebrew University)

  • Hervé Zwirn

    (IHPST - Institut d'Histoire et de Philosophie des Sciences et des Techniques - UP1 - Université Paris 1 Panthéon-Sorbonne - DEC - Département d'Etudes Cognitives - ENS Paris - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, CMLA - Centre de Mathématiques et de Leurs Applications - ENS Cachan - École normale supérieure - Cachan - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we propose to use elements of the mathematical formalism of Quantum Mechanics to capture the idea that agents' preferences, in addition to being typically uncertain, can also be indeterminate. They are determined (i.e., realized, and not merely revealed) only when the action takes place. An agent is described by a state that is a superposition of potential types (or preferences or behaviors). This superposed state is projected (or "collapses") onto one of the possible behaviors at the time of the interaction. In addition to the main goal of modeling uncertainty of preferences that is not due to lack of information, this formalism seems to be adequate to describe widely observed phenomena of non-commutativity in patterns of behavior. We explore some implications of our approach in a comparison between classical and type indeterminate rational choice behavior. The potential of the approach is illustrated in two examples.

Suggested Citation

  • Ariane Lambert-Mogiliansky & Schmuel Zamir & Hervé Zwirn, 2009. "Type indeterminacy - A Model of the KT(Khaneman Tversky)- Man," PSE-Ecole d'économie de Paris (Postprint) halshs-00754333, HAL.
    • Handle: RePEc:hal:pseptp:halshs-00754333
    DOI: 10.1016/j.jmp.2009.01.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Adam Brandenburger, 2007. "A Connection Between Correlation in Game Theory and Quantum Mechanics," Levine's Working Paper Archive 122247000000001725, David K. Levine.
    2. John Duffy & Ted Loch-Temzelides, 2021. "A double-slit experiment with human subjects," PLOS ONE, Public Library of Science, vol. 16(2), pages 1-7, February.
    3. Thomas Boyer-Kassem & Sébastien Duchêne & Eric Guerci, 2016. "Quantum-like models cannot account for the conjunction fallacy," Theory and Decision, Springer, vol. 81(4), pages 479-510, November.
    4. Dino Borie, 2013. "Expected utility theory with non-commutative probability theory," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 8(2), pages 295-315, October.
    5. Khrennikov, Andrei, 2015. "Quantum version of Aumann’s approach to common knowledge: Sufficient conditions of impossibility to agree on disagree," Journal of Mathematical Economics, Elsevier, vol. 60(C), pages 89-104.
    6. Ariane Lambert-Mogiliansky & Jerome Busemeyer, 2012. "Quantum Type Indeterminacy in Dynamic Decision-Making: Self-Control through Identity Management," Games, MDPI, vol. 3(2), pages 1-22, May.
    7. Zabaleta, O.G. & Arizmendi, C.M., 2010. "Quantum dating market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(14), pages 2858-2863.
    8. V. I. Yukalov & D. Sornette, 2012. "Quantum decision making by social agents," Papers 1202.4918, arXiv.org, revised Oct 2015.
    9. Godfrey Cadogan, 2012. "Representation theory for risk on markowitz-tversky-kahneman topology," Economics Bulletin, AccessEcon, vol. 32(4), pages 1-34.
    10. Emmanuel Haven, 2008. "Private Information and the ‘Information Function’: A Survey of Possible Uses," Theory and Decision, Springer, vol. 64(2), pages 193-228, March.
    11. Ariane Lambert-Mogiliansky & François Dubois, 2015. "Transparency in Public Life. A Quantum Cognition Perspective," PSE Working Papers halshs-01064980, HAL.
    12. V. I. Danilov & A. Lambert-Mogiliansky, 2005. "Non-classical Measurement Theory: a Framework for Behavioral Sciences," Levine's Working Paper Archive 122247000000000899, David K. Levine.
    13. Boyer-Kassem, Thomas & Duchêne, Sébastien & Guerci, Eric, 2016. "Testing quantum-like models of judgment for question order effect," Mathematical Social Sciences, Elsevier, vol. 80(C), pages 33-46.
    14. Ismaël Rafaï & Sébastien Duchêne & Eric Guerci & Irina Basieva & Andrei Khrennikov, 2022. "The triple-store experiment: a first simultaneous test of classical and quantum probabilities in choice over menus," Theory and Decision, Springer, vol. 92(2), pages 387-406, March.
    15. V. Danilov & A. Lambert-Mogiliansky, 2010. "Expected utility theory under non-classical uncertainty," Theory and Decision, Springer, vol. 68(1), pages 25-47, February.
    16. Vladimir Danilov, 2009. "Modelling of Non-Commuting Measurements," Journal of the New Economic Association, New Economic Association, issue 1-2, pages 10-36.
    17. Adam Brandenburger, 2008. "The Relationship Between Classical and Quantum Correlation in Games," Levine's Working Paper Archive 122247000000002312, David K. Levine.
    18. Jerome R. Busemeyer & Jörg Rieskamp, 2014. "Psychological research and theories on preferential choice," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 3, pages 49-72, Edward Elgar Publishing.
    19. Lora R. Todorova, 2012. "Quantum Risk Preferences in a Laboratory Experiment," FEMM Working Papers 120025, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    20. Siegfried K. Berninghaus & Lora R. Todorova & Bodo Vogt, 2012. "How Sensitive is Strategy Selection in Coordination Games?," FEMM Working Papers 120020, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    21. Jerry Busemeyer & Ariane Lambert-Mogiliansky, 2009. "TI-games I: An exploration of Type Indeterminacy in strategic decision-making," PSE Working Papers halshs-00566780, HAL.
    22. Jerry Busemeyer & Ariane Lambert-Mogiliansky, 2009. "TI-games I: An exploration of Type Indeterminacy in strategic decision-making," Working Papers halshs-00566780, HAL.
    23. Haven, Emmanuel & Sozzo, Sandro, 2016. "A generalized probability framework to model economic agents' decisions under uncertainty," International Review of Financial Analysis, Elsevier, vol. 47(C), pages 297-303.
    24. Loretta Mastroeni & Maurizio Naldi & Pierluigi Vellucci, 2023. "Personal Finance Decisions with Untruthful Advisors: An Agent-Based Model," Computational Economics, Springer;Society for Computational Economics, vol. 61(4), pages 1477-1522, April.
    25. Aerts, Diederik & Broekaert, Jan & Czachor, Marek & Kuna, Maciej & Sinervo, Barry & Sozzo, Sandro, 2014. "Quantum structure in competing lizard communities," Ecological Modelling, Elsevier, vol. 281(C), pages 38-51.

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    More about this item

    Keywords

    Indeterminacy; Non-commutativity; Quantum state;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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