A probabilistic choice model based on Tsallis' statistics

Taiki Takahashi
2007 Physica A: Statistical Mechanics and its Applications  
Decision under risk and uncertainty (probabilistic choice) has been attracting attention in econophysics and neuroeconomics. This paper proposes a probabilistic choice model based on a mathematical equivalence of delay and uncertainty in decision-making, and the deformed algebra developed in the Tsallis' non-extensive thermodynamics. Furthermore, it is shown that this model can be utilized to quantify the degree of consistency in probabilistic choice in humans and animals. Future directions in
more » ... he application of the model to studies in econophysics, neurofinance, neuroeconomics, and social physics are discussed.
doi:10.1016/j.physa.2007.07.005 fatcat:q36zhfzplzfyhovd2tauzduise