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Paper detail

A Quantum Model for the Ellsberg and Machina Paradoxes

The Ellsberg and Machina paradoxes reveal that expected utility theory is problematical when real subjects take decisions under uncertainty. Suitable generalizations of expected utility exist which attempt to solve the Ellsberg paradox, but none of them provides a satisfactory solution of the Machina paradox. In this paper we elaborate a quantum model in Hilbert space describing the Ellsberg situation and also the Machina situation, and show that we can model the specific aspect of the Machina situation that is unable to be modeled within the existing generalizations of expected utility.

preprint2012arXivOpen access
Diederik AertsSandro SozzoJocelyn Tapia
physics.soc-phquant-ph
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Diederik AertsSandro SozzoJocelyn Tapia

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