Quantum Decision Theory and Complexity Modelling in Economics and Public Policy (New Economic Windows)

Preface
Contents
Part I Quantum Decision Theory
1 A Brief Overview of the Quantum-Like Formalism in Social Science
	Introduction
	Quantum Versus Quantum-Like
	Quantum Probabilistic Modelling of Decision Making: Is This Exotic?
	What is the Main Advantage of Quantum Information Processing?
	Classical Versus Quantum Probability
	Classical (Bayesian) Versus Quantum (Generally non-Bayesian) Rationality and Social Lasing
	Agreeing to Disagree
	Classical Physics Formalism in Economics and Finance
	Quantum-Like Formalism in Economics and Finance
	Conclusion
	References
2 Cooperative Functioning of Unconscious and Consciousness from Theory of Open Quantum Systems
	Introduction
	A Few Words About Quantum Formalism
	Indirect Measurement Scheme: Apparatus with Meter Interacting with a System
	More Technical Details
	Indirect Measurements of Mental Observables: Unconscious as a System and Consciousness as a Measurement Apparatus
	Contextuality
	Concluding Remarks
	References
3 Hilbert Space Modelling with Applications in Classical Optics, Human Cognition, and Game Theory
	Introduction
	A Brief Mathematical Detour
		Complex Euclidian Space
		Inner Products and Norms of Vectors
		Direct Sums and Direct Products
		Linear Operator Space
		Examples of Hilbert Spaces
	Operations on Hilbert Spaces
		Bounded and Un-Bounded Operators in Hilbert Space
	Hilbert Space in QM
		Born’s Rule: A Small Note
		Application of Hilbert Space in Probability Theory
	Applications of Hilbert Space Representation Outside QM
		Hilbert Space Representation of Classical Optics
		Classical and Quantum Entanglements
	Human Cognition and Decision Modelling
	COM Approach (Patra and Ghose)
	Discussion: Application of COM in Game Theory
	References
4 Remodeling Leadership: Quantum Modeling of Wise Leadership
	Introduction
	Leadership
	Quantum Basics
	Classical and Quantum Ontology
	Quantum Modeling: Probability and Subjectivity
	Using Quantum-Like Modeling in Social Science
	Non-optimal But Normal Behavior
	Order Effects in Human Cognition
	Conjunction and Disjunction Effects
	Heisenberg-Robertson Inequalities
	Contextuality and Randomness
	Emergence of Concept Combinations Through Entanglement
	Emergent Cognitive State
	Modeling Wise Leader Interaction with Context
	Social Interaction Dynamics
	Implications for Leadership and Wisdom Research
	Wise Leaders as Entangled Actors
	Final Comments
	Appendix 1
	Appendix 2
	References
5 Quantum Financial Entanglement: The Case of Strategic Default
	Introduction
	Cognitive Entanglement
	Quantum Decision Theory
	Strategic Default
	Social Entanglement
	Financial Entanglement
	Discussion
	Conclusions
	References
6 Quantum-Like Contextual Utility Framework Application in Economic Theory and Wider Implications
	Introduction
		Epstien’s Framework
	Modelling Background
		Overview of Quantum-Like Modelling Set Up
	Model Set-Up
		Model
		Partial Ambiguity Resolution: Dynamics and Hamiltonian Formulation
		Ambiguity Aversion- Attraction and Diversity of Investors’ Opinion and Asset Pricing
		Entropic Measures
		POVM in Decision Models
	Conclusion and Further Discussion
		Objective or Subjective Probabilities?
		Application of Quantum-Like Modelling in Wider Context of Complex Economy
		Interpreting the Model- Real World Implications and Decision Making
	References
Part II Complexity Modeling in Economics and Public Policy
7 Complexity Economics: Why Does Economics Need This Different Approach?
	What Difference Does Complexity Economics Make?
	Closing Thoughts
	Questions and Answers
8 Policy and Program Design and Evaluation in Complex Situations
	Introduction
	Sense-Making in Today’s World
		The Cynefin Framework
		The Stacey Matrix
		Integral (Meta) Theory (Ken Wilber)
	Complex Adaptive Systems (CAS) and How They Add Value to Public Policy
		Why Complex Adaptive Systems Thinking is Important to Public Policy
		Value Added of CAS to Public Policy
	Applications of CAS Public Policy
		Economics
		Power and Politics
		Law
		Health
		Education
		Sustainability and Complexity
	Program Design in Complex Systems
	Dealing with Complexity in Policy Design
	Monitoring and Evaluation in Complex Situations
	From New Public Management to Human Learning Systems
	Conclusion
	References
9 Market State Dynamics in Correlation Matrix Space
	Introduction
	Methodology
		Data Description
		Evolution of Cross-Correlation Structures
		Wishart Orthogonal Ensembles
		Power Map Technique
		Pairwise (dis)similarity Measures and Multidimensional Scaling
	Identifying States of a Financial Market
	Sectorial Analysis
	Trajectories in the Correlation Matrix Space
		Comparison of COVID-19 Case with Other Crash and Normal Periods
	Conclusions and Future Outlook
	References
10 Interstate Migration and Spread of Covid-19 in Indian States
	Introduction
	Impact of Pandemic on Migrants
	Data and Methodology
		Data
		Methodology of Network Construction
	Visualization of Complex Network of Migration
		Network Plots Using the Census-2011 Data
		Network Plots Using Covid-19 Special Train Data
		Possible Relationship Between Covid-19 Cases and Migrants
	Relationship Between Migration and Spread to Covid-19
	Conclusion and Policy Recommendations
	References
11 Trade Intervention Under the Belt and Road Initiative with Asian Economies
	Introduction
	Data and Methodology
		Gravity Model
		Neural Network Model
		Dataset
	Results and Analysis
	Conclusions
	Appendix
	References
12 Innovation Diffusion with Intergroup Suppression: A Complexity Perspective
	Introduction
	The Model
		Model for 2 Groups
		Two Group Example with Stable Positive Equilibrium
	Empirical Data on Tablet Use
	Conclusion
	References
Epilogue: Nobel Prize in Physics for Complexity Studies and Weather Behavior—Implications for Social Sciences and Public Policy
References