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<8>. Quantum Mechanics and Human Decision Making
Dr. Paras Mal Agrawal Visiting professor and Research Professional (Retd.) Oklahoma State University, Stillwater OK 74078 USA.
Email: parasagrawal@hotmail.com}
In physics, at the beginning of the twentieth century it was recognized that some experiments could not be explained by the conventional classical mechanics, but the same could be explained by the newly discovered quantum theory. It resulted in a new mechanics called quantum mechanics that revolutionized scientific and technological developments. Again, at the beginning of the twenty-first century, it is being recognized that some experiments related to the human decision-making processes could not be explained by the conventional classical decision theory but the same could be explained by the models based on quantum mechanics. It is now recognized that we need quantum mechanics in psychology as well as in economics and finance. In this paper we attempt to advance and explain the present understanding of applicability of quantum mechanics to the human decisionmaking processes. Using the postulates analogous to the postulates of quantum mechanics, we show the derivation of the quantum interference equation to illustrate the quantum approach. The explanation of disjunction effect experiments of Tversky and Shafir (Tversky A, Shafir E (1992) The disjunction effect in choice under uncertainty. Psych. Sci. 3(5):305-309) has been chosen to demonstrate the necessity of a quantum model. Further, to suggest the possibility of application of the quantum theory to the business-related decisions, some terms such as price operator, state of mind of the acquiring firm, etc., are introduced and discussed in context of the merger/acquisition of business firms. The possibility of the development in areas such as quantum finance, quantum management, application of quantum mechanics to the human dynamics related to healthcare management, etc., is also indicated.
Introduction
It is well known that quantum mechanics leads to many peculiar results such as quantum interference, uncertainty principle, quantum nature of light, quantum theory of measurement, tunneling, etc., which are in contradiction with our common sense and classical mechanics. Physicist Niels Bohr, who won the 1922 Nobel Prize in Physics chiefly for his work on atomic structure, once remarked, "If quantum mechanics hasn't profoundly shocked you, you haven't
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