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Quantum Type Indeterminacy in Dynamic Decision-Making: Self-control Through Identity Management

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  • Jérôme Busemeyer

    (Indiana University - Indiana University)

  • Ariane Lambert-Mogiliansky

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

Abstract

The Type Indeterminacy model is a theoretical framework that uses some elements of quantum formalism to model the constructive preference perspective suggested by Kahneman and Tversky. In a dynamic decision context type indeterminacy induces a game with multiple selves associated with a state transition process. We define a Markov perfect equilibrium among the selves with individual identity (preferences) as the state variable. The approach allows to characterize generic personality types and derive some comparative static results.

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Bibliographic Info

Paper provided by HAL in its series PSE Working Papers with number halshs-00692024.

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Date of creation: Apr 2012
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Handle: RePEc:hal:psewpa:halshs-00692024

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Keywords: Indeterminacy ; Decision-making ; Self-control ; Identity;

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  1. Drew Fudenberg & David K Levine, 2005. "A Dual Self Model of Impulse Control," Levine's Working Paper Archive 618897000000000876, David K. Levine.
  2. Pierfrancesco La Mura, 2003. "Correlated Equilibria of Classical Strategic Games with Quantum Signals," Game Theory and Information, EconWPA 0309001, EconWPA.
  3. Ariane Lambert Mogiliansky & Shmuel Zamir & Herve Zwirn, 2003. "Type Indeterminacy: A Model of the KT(Kahneman-Tversky)-man," Discussion Paper Series, The Center for the Study of Rationality, Hebrew University, Jerusalem dp343, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  4. Hey, John D. & Knoll, Julia A., 2007. "How far ahead do people plan?," Economics Letters, Elsevier, vol. 96(1), pages 8-13, July.
  5. Roland Benabou and Jean Tirole, 2004. "Willpower and Personal Rules," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 112(4), pages 848-886, August.
  6. Danilov, V.I. & Lambert-Mogiliansky, A., 2008. "Measurable systems and behavioral sciences," Mathematical Social Sciences, Elsevier, Elsevier, vol. 55(3), pages 315-340, May.
  7. Eric Maskin & Jean Tirole, 1997. "Markov Perfect Equilibrium, I: Observable Actions," Harvard Institute of Economic Research Working Papers 1799, Harvard - Institute of Economic Research.
  8. Roland Bénabou & Jean Tirole, 2011. "Identity, Morals, and Taboos: Beliefs as Assets," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 805-855.
  9. Ariane Lambert-Mogiliansky, 2010. "Endogenous preferences in games with type indeterminate players," PSE Working Papers halshs-00564895, HAL.
  10. Jerry Busemeyer & Ariane Lambert-Mogiliansky, 2009. "TI-games I: An exploration of Type Indeterminacy in strategic decision-making," PSE Working Papers halshs-00566780, HAL.
  11. V. Danilov & A. Lambert-Mogiliansky, 2010. "Expected utility theory under non-classical uncertainty," Theory and Decision, Springer, Springer, vol. 68(1), pages 25-47, February.
  12. Kirchsteiger, Georg & Rigotti, Luca & Rustichini, Aldo, 2006. "Your morals might be your moods," Journal of Economic Behavior & Organization, Elsevier, vol. 59(2), pages 155-172, February.
  13. repec:hal:wpaper:halshs-00566780 is not listed on IDEAS
  14. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
  15. Peleg, Bezalel & Yaari, Menahem E, 1973. "On the Existence of a Consistent Course of Action when Tastes are Changing," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 40(3), pages 391-401, July.
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