Discrete Versus Continuous Algorithms in Dynamics of Affective Decision Making

The dynamics of affective decision making is considered for an intelligent network composed of agents with different types of memory: long-term and short-term memory. The consideration is based on probabilistic affective decision theory, which takes into account the rational utility of alternatives as well as the emotional alternative attractiveness. The objective of this paper is the comparison of two multistep operational algorithms of the intelligent network: one based on discrete dynamics and the other on continuous dynamics. By means of numerical analysis, it is shown that, depending on the network parameters, the characteristic probabilities for continuous and discrete operations can exhibit either close or drastically different behavior. Thus, depending on which algorithm is employed, either discrete or continuous, theoretical predictions can be rather different, which does not allow for a uniquely defined description of practical problems. This finding is important for understanding which of the algorithms is more appropriate for the correct analysis of decision-making tasks. A discussion is given, revealing that the discrete operation seems to be more realistic for describing intelligent networks as well as affective artificial intelligence.

Quantum Operation of Affective Artificial Intelligence

The review analyzes the fundamental principles which Artificial Intelligence should be based on in order to imitate the realistic process of taking decisions by humans experiencing emotions. Two approaches are compared, one based on quantum theory and the other employing classical terms. Both these approaches have a number of similarities, being principally probabilistic. The analogies between quantum measurements under intrinsic noise and affective decision making are elucidated. It is shown that cognitive processes have many features that are formally similar to quantum measurements. This, however, in no way means that for the imitation of human decision making Affective Artificial Intelligence has necessarily to rely on the functioning of quantum systems. Appreciating the common features between quantum measurements and decision making helps for the formulation of an axiomatic approach employing only classical notions. Artificial Intelligence, following this approach, operates similarly to humans, by taking into account the utility of the considered alternatives as well as their emotional attractiveness. Affective Artificial Intelligence, whose operation takes account of the cognition-emotion duality, avoids numerous behavioural paradoxes of traditional decision making. A society of intelligent agents, interacting through the repeated multistep exchange of information, forms a network accomplishing dynamic decision making. The considered intelligent networks can characterize the operation of either a human society of affective decision makers, or the brain composed of neurons, or a typical probabilistic network of an artificial intelligence.

Calibration of Quantum Decision Theory: Aversion to Large Losses and Predictability of Probabilistic Choices

We present the first calibration of quantum decision theory (QDT) to a dataset of binary risky choice. We quantitatively account for the fraction of choice reversals between two repetitions of the experiment, using a probabilistic choice formulation in the simplest form without model assumption or adjustable parameters. The prediction of choice reversal is then refined by introducing heterogeneity between decision makers through their differentiation into two groups: ``majoritarian'' and ``contrarian'' (in proportion 3:1). This supports the first fundamental tenet of QDT, which models choice as an inherent probabilistic process, where the probability of a prospect can be expressed as the sum of its utility and attraction factors. We propose to parameterise the utility factor with a stochastic version of cumulative prospect theory (logit-CPT), and the attraction factor with a constant absolute risk aversion (CARA) function. For this dataset, and penalising the larger number of QDT parameters via the Wilks test of nested hypotheses, the QDT model is found to perform significantly better than logit-CPT at both the aggregate and individual levels, and for all considered fit criteria for the first experiment iteration and for predictions (second ``out-of-sample'' iteration). The distinctive QDT effect captured by the attraction factor is mostly appreciable (i.e., most relevant and strongest in amplitude) for prospects with big losses. Our quantitative analysis of the experimental results supports the existence of an intrinsic limit of predictability, which is associated with the inherent probabilistic nature of choice. The results of the paper can find applications both in the prediction of choice of human decision makers as well as for organizing the operation of artificial intelligence.

Quantification of emotions in decision making

The problem of quantification of emotions in the choice between alternatives is considered. The alternatives are evaluated in a dual manner. From one side, they are characterized by rational features defining the utility of each alternative. From the other side, the choice is affected by emotions labeling the alternatives as attractive or repulsive, pleasant or unpleasant. A decision maker needs to make a choice taking into account both these features, the utility of alternatives and their attractiveness. The notion of utility is based on rational grounds, while the notion of attractiveness is vague and rather is based on irrational feelings. A general method, allowing for the quantification of the choice combining rational and emotional features is described. Despite that emotions seem to avoid precise quantification, their quantitative evaluation is possible at the aggregate level. The analysis of a series of empirical data demonstrates the efficiency of the approach, including the realistic behavioral problems that cannot be treated by the standard expected utility theory.

Quantum Uncertainty in Decision Theory

An approach is presented treating decision theory as a probabilistic theory based on quantum techniques. Accurate definitions are given and thorough analysis is accomplished for the quantum probabilities describing the choice between separate alternatives, sequential alternatives characterizing conditional quantum probabilities, and behavioral quantum probabilities taking into account rational-irrational duality of decision making. The comparison between quantum and classical probabilities is explained. The analysis demonstrates that quantum probabilities serve as an essentially more powerful tool of characterizing various decision-making situations including the influence of psychological behavioral effects.

Tossing Quantum Coins and Dice

The procedure of tossing quantum coins and dice is described. This case is an important example of a quantum procedure because it presents a typical framework employed in quantum information processing and quantum computing. The emphasis is on the clarification of the difference between quantum and classical conditional probabilities. These probabilities are designed for characterizing different systems, either quantum or classical, and they, generally, cannot be reduced to each other. Thus the L\"{u}ders probability cannot be treated as a generalization of the classical conditional probability. The analogies between quantum theory of measurements and quantum decision theory are elucidated.

Evolutionary Processes in Quantum Decision Theory

The review presents the basics of quantum decision theory, with the emphasis on temporary processes in decision making. The aim is to explain the principal points of the theory. The difference of an operationally testable rational choice between alternatives from a choice decorated by irrational feelings is elucidated. Quantum-classical correspondence is emphasized. A model of quantum intelligence network is described. Dynamic inconsistencies are shown to be resolved in the frame of the quantum decision theory.

Information Processing by Networks of Quantum Decision Makers

We suggest a model of a multi-agent society of decision makers taking decisions being based on two criteria, one is the utility of the prospects and the other is the attractiveness of the considered prospects. The model is the generalization of quantum decision theory, developed earlier for single decision makers realizing one-step decisions, in two principal aspects. First, several decision makers are considered simultaneously, who interact with each other through information exchange. Second, a multistep procedure is treated, when the agents exchange information many times. Several decision makers exchanging information and forming their judgement, using quantum rules, form a kind of a quantum information network, where collective decisions develop in time as a result of information exchange. In addition to characterizing collective decisions that arise in human societies, such networks can describe dynamical processes occurring in artificial quantum intelligence composed of several parts or in a cluster of quantum computers. The practical usage of the theory is illustrated on the dynamic disjunction effect for which three quantitative predictions are made: (i) the probabilistic behavior of decision makers at the initial stage of the process is described; (ii) the decrease of the difference between the initial prospect probabilities and the related utility factors is proved; (iii) the existence of a common consensus after multiple exchange of information is predicted. The predicted numerical values are in very good agreement with empirical data.

Decision Theory with Prospect Interference and Entanglement

We present a novel variant of decision making based on the mathematical theory of separable Hilbert spaces. This mathematical structure captures the effect of superposition of composite prospects, including many incorporated intentions, which allows us to describe a variety of interesting fallacies and anomalies that have been reported to particularize the decision making of real human beings. The theory characterizes entangled decision making, non-commutativity of subsequent decisions, and intention interference. We demonstrate how the violation of the Savage's sure-thing principle, known as the disjunction effect, can be explained quantitatively as a result of the interference of intentions, when making decisions under uncertainty. The disjunction effects, observed in experiments, are accurately predicted using a theorem on interference alternation that we derive, which connects aversion-to-uncertainty to the appearance of negative interference terms suppressing the probability of actions. The conjunction fallacy is also explained by the presence of the interference terms. A series of experiments are analysed and shown to be in excellent agreement with a priori evaluation of interference effects. The conjunction fallacy is also shown to be a sufficient condition for the disjunction effect and novel experiments testing the combined interplay between the two effects are suggested.

Mathematical Structure of Quantum Decision Theory

One of the most complex systems is the human brain whose formalized functioning is characterized by decision theory. We present a "Quantum Decision Theory" of decision making, based on the mathematical theory of separable Hilbert spaces. This mathematical structure captures the effect of superposition of composite prospects, including many incorporated intentions, which allows us to explain a variety of interesting fallacies and anomalies that have been reported to particularize the decision making of real human beings. The theory describes entangled decision making, non-commutativity of subsequent decisions, and intention interference of composite prospects. We demonstrate how the violation of the Savage's sure-thing principle (disjunction effect) can be explained as a result of the interference of intentions, when making decisions under uncertainty. The conjunction fallacy is also explained by the presence of the interference terms. We demonstrate that all known anomalies and paradoxes, documented in the context of classical decision theory, are reducible to just a few mathematical archetypes, all of which finding straightforward explanations in the frame of the developed quantum approach.