On modeling of uncertainty in behavioral economics

Abstract

© 2021, The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG. This paper is about a closer look at mathematical analysis of various types of uncertainty, in natural science as well as in social sciences, for econometricians. The emphasis is upon the current effort to promote quantum probability as the most appropriate and reliable model for uncertainty in behavioral economics, both in human decision-making (e.g., in investment portfolio selection), and modeling of financial data, taking into account of human factor.