Aerts, Diederik and Broekaert, Jan and Czachor, Marek and D'Hooghe, Bart (2011): A QuantumConceptual Explanation of Violations of Expected Utility in Economics. Published in: Lecture Notes in Computer Science , Vol. 7052, No. 7052 (2011): pp. 192198.

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Abstract
The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage's SureThing Principle. It has been put forward, e.g. by situations such as the Allais and Ellsberg paradoxes, that reallife situations can violate Savage's SureThing Principle and hence also expected utility. We analyze how this violation is connected to the presence of the 'disjunction effect'' of decision theory and use our earlier study of this effect in concept theory to put forward an explanation of the violation of Savage's SureThing Principle, namely the presence of 'quantum conceptual thought' next to 'classical logical thought' within a double layer structure of human thought during the decision process. Quantum conceptual thought can be modeled mathematically by the quantum mechanical formalism, which we illustrate by modeling the Hawaii problem situation, a wellknown example of the disjunction effect, and we show how the dynamics in the Hawaii problem situation is generated by the whole conceptual landscape surrounding the decision situation.
Item Type:  MPRA Paper 

Original Title:  A QuantumConceptual Explanation of Violations of Expected Utility in Economics 
Language:  English 
Keywords:  Expected Utility, SureThing Principle, Quantum modeling, disjunction effect, Ellsberg paradox 
Subjects:  B  History of Economic Thought, Methodology, and Heterodox Approaches > B4  Economic Methodology > B40  General C  Mathematical and Quantitative Methods > C0  General > C00  General A  General Economics and Teaching > A1  General Economics > A10  General D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D80  General 
Item ID:  41792 
Depositing User:  Diederik Aerts 
Date Deposited:  07. Oct 2012 23:31 
Last Modified:  12. Feb 2013 14:50 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/41792 