Quantum Probability Theory in Financial Decision Making

Quantum Probability Theory explores decision-making under uncertainty using principles from quantum mechanics. Unlike classical probability, which relies on deterministic values, quantum probability allows for the representation of multiple potential outcomes simultaneously, capturing the complexity of human behavior and market dynamics. In financial decision-making, this approach helps explain phenomena like investors' preferences and the influence of context on choices. By embracing the probabilistic nature of financial markets, quantum probability can enhance models used for risk assessment and forecasting, offering a more nuanced understanding of how decisions are made in inherently uncertain environments.