Approach to Financial Decision Making within Quantum Physics and Neurosciences

Ana Njegovanović

doi:10.11114/ijlpa.v3i2.4991

Abstract

This paper focuses on the study of the functional relationships between the tools of neuroscience, neurofinance and psychology on the one hand, and quantum physics / quantum mechanics and neurophysiology on the other. Can physics / quantum mechanics help explain / understand human behavior through the Shrödinger cat platform (perhaps we can explain the most mysterious phenomena: human behavior - cerebral secretion?)? The concepts of quantum mechanics allow a good prediction of human decision making within Schrödinger's cat (two particles can talk to each other even at a distance of a galaxy, perhaps in this sense can help explain an extremely complex decision making system), and define the "connection of quantum models with neurophysiological processes in the brain “... which is a very complex problem.” (Haven and Khrennikov) The application of quantum physics and neuroscience in finance allows us to consider the complexity of financial decision making, while the connection between quantum physics and psychology manifests itself as the field of quantum physics seeks to understand the fundamental nature of particles. while the field of psychology seeks to explain human nature along with its inherent misconceptions.If decision-making is a process of gathering evidence in favor of different alternatives over time, the process is discontinued once the decision limit is reached, followed by choice of decision. e activity within the posterior parietal cortex several important questions remain unanswered. Neural mechanisms that support the accumulation of evidence record the activities of individual neurons in different parts of the prefrontal cortex (PFC) and the lateral intraparietal area (LIP).

Highlights

This paper focuses on the study of the functional relationships between the tools of neuroscience, neurofinance and psychology on the one hand, and quantum physics / quantum mechanics and neurophysiology on the other
Creating models with the help of quantum information rules and the non-classical logic of the way a person makes decisions is a great challenge. This raises the question of how neurons can generate quantum statistics
It was recognized at the beginning of the twentieth century that some experiments could not be explained by conventional classical mechanics, but the same could be explained by newly discovered quantum theory

Summary

Introduction

This paper focuses on the study of the functional relationships between the tools of neuroscience, neurofinance and psychology on the one hand, and quantum physics / quantum mechanics and neurophysiology on the other. The approach is based on the self-consistent methodological background of quantum theory, and benefits from its embedded contextual probabilistic nature It enables the production of quantitative models for various behavioral phenomena that compromise the classical paradigm of rational-agent issues: sequence effects, risk of ambiguity aversion, altruistic collaboration, social and market instability, connectedness, disjunction, and other "misconceptions" of human logic (Khrennikov, 2010; Busemeyer and Bruza , 2012; Haven and Khrennikov, 2013, 2017; Aerts et al, 2016b). Haven 's (2003) extension where the uncertainty in the original option price is replaced by quantum information set by Qubit whose superposition state is 0 and 1

Literature Review

Failure of the law of total probability

Decision Making and Rationality From the Economic and Quantum Aspect

Behavior and Financial Decision Making From the Aspect of Newton Law

Conclusion