Type Indeterminacy: A Model of the KT(Kahneman-Tversky)-man
In this note we propose to use 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 (realized, and not merely revealed) only when the action takes place. An agent is described by a state which 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 modelling uncertainty of preferences which is not due to lack of information, this formalism, seems to be adequate to describe widely observed phenomena like framing and instances of noncommutativity in patterns of behavior. We propose two experiments to test the theory.
|Date of creation:||Oct 2003|
|Contact details of provider:|| Postal: Feldman Building - Givat Ram - 91904 Jerusalem|
Web page: http://www.ratio.huji.ac.il/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Selten, Reinhard, 1998.
"Features of experimentally observed bounded rationality,"
European Economic Review,
Elsevier, vol. 42(3-5), pages 413-436, May.
- Selten, Reinhard, "undated". "Features of Experimentally Observed Bounded Rationality," Discussion Paper Serie B 421, University of Bonn, Germany, revised Nov 1997.
- Colin F. Camerer, 1997. "Progress in Behavioral Game Theory," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 167-188, Fall.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-291, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- W. Pesendorfer & F. Gul, 1999.
"Temptation and Self-Control,"
Princeton Economic Theory Papers
99f1, Economics Department, Princeton University.
- Erev, Ido & Bornstein, Gary & Wallsten, Thomas S., 1993. "The Negative Effect of Probability Assessments on Decision Quality," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(1), pages 78-94, June.
- McFadden, Daniel, 1999.
"Rationality for Economists?,"
Journal of Risk and Uncertainty,
Springer, vol. 19(1-3), pages 73-105, December.
When requesting a correction, please mention this item's handle: RePEc:huj:dispap:dp343. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tomer Siedner)
If references are entirely missing, you can add them using this form.