When you think about making choices, you might imagine people weighing their options and picking the one that makes the most sense. This idea is also how many economic theories are built—they assume that people make logical decisions to get the best results. But in reality, people don’t always choose the logical option, and their behavior can be unpredictable.

That’s where quantum decision-making comes in. It’s a new way of looking at how we make choices, borrowing ideas from quantum physics. Quantum physics is a science that studies how tiny particles, like atoms, behave in ways that can seem strange or surprising. Economists are now taking some of these ideas, like superposition and entanglement, to better understand the puzzling ways people behave when they make decisions about money or goods.

These concepts might sound complicated, but they can help us explain the unpredictable side of human behavior and even improve economic models to predict how markets move or consumers act.

Using Quantum Physics in Economics

Quantum decision-making takes two important ideas from quantum physics—superposition and entanglement—and applies them to decision-making. But instead of looking at the behavior of particles, this is about what happens in people’s minds.

Superposition and Mixed Feelings

Superposition in physics means that a tiny particle, like an electron, can exist in multiple states at the same time until it is measured or observed. Think of it like flipping a coin that is somehow both heads and tails until it lands.

If we relate this to how people make decisions, superposition might explain how someone can have conflicting thoughts or feelings about a decision at the same time. For example, imagine you’re thinking about buying a really expensive, but cool new phone. You might want it because it’s the latest model, but you might also feel unsure because it costs so much money. Until you decide—buy it or don’t—your mind is juggling these two states, much like a particle in superposition.

Quantum models try to show this “messy middle” of decision-making, where people don’t always have a clear yes or no answer.

Entanglement and Connections

Entanglement is another idea from quantum physics. It describes how two particles can become linked, so that whatever happens to one instantly affects the other, even if they’re far apart.

When we apply this to economics, it could represent how people’s choices are connected to others around them. For instance, a person might decide to shop at a new store just because their friends are doing it, even if they didn’t need anything from the store. Similarly, in stock markets, when a group of investors starts to sell because they’re nervous about the future, other investors might follow suit, even if there’s no real reason to panic. These decisions become entangled, or dependent on each other.

This concept helps economists understand how group behaviors can create bigger trends, like a buying frenzy during a sale or a market crash during bad news.

Why We Need Quantum Thinking

The classic way economists have modeled decisions is based on the idea that people are rational and independent thinkers. But real-world behavior often proves this wrong. Take something as simple as eating out. A traditional economic model might predict that you pick a restaurant based on the best quality and price. But in reality, many people might choose a popular restaurant they’ve seen on social media, even if it’s more expensive or less convenient.

Quantum decision-making helps us account for these quirks by recognizing that people’s choices aren’t always logical. Sometimes their feelings, doubts, or connections with others play a big role, and this is where quantum ideas like superposition (mixed feelings) and entanglement (social influence) can help make sense of it all.

Financial Markets

Stock markets are full of uncertainty, and quantum ideas can help explain some of their unpredictable swings. For example, many investors feel unsure about whether to buy or sell stock. This uncertainty is like superposition—they aren’t fully committed to one option until they act.

Entanglement shows up in markets, too. When some investors start selling because they’re worried about the economy, it often triggers a chain reaction. Even investors who weren’t planning to sell might panic and follow suit, creating a market crash.

Everyday Shopping

When you’re shopping for clothes or gadgets, your decision-making process might not be straightforward. You might feel torn—one part of you wants to splurge on something trendy, while another part reminds you to save money. This kind of decision can be thought of as superposition, where multiple preferences exist at once until you make the final call.

Entanglement can also play a role here. Maybe your friends all bought the latest gaming console, so you feel like you should join in, too. Your decision is now tied to their choices.

Behavioral Insights

Quantum models can even help explain why people sometimes make decisions they regret or change their preferences based on how a question is framed. For example, more people might respond to a sale advertised as “Save $50” rather than “Now $450,” even though it’s the same discount. Quantum models could explore how people’s states of mind shift depending on small details like wording or timing.

Challenges of Quantum Models

While quantum decision-making has a lot of potential, it’s still a new way of thinking, and there are some roadblocks:

  1. It’s Complicated: A lot of the math behind quantum decision-making is pretty advanced, which can make it hard for economists and other researchers to use.
  2. Data Is Hard to Collect: This approach requires detailed information about people’s behavior and emotions, which isn’t always easy to gather.
  3. Hard to Understand: Unlike traditional models, quantum ones aren’t always easy to explain. This might make them difficult to use in real-world policymaking or business strategy.
  4. Needs More Testing: Quantum ideas are still mostly theoretical. Economists need to do more real-world testing to see if these models actually work.

Even with these challenges, quantum decision-making offers exciting ways to rethink what we know about human behavior. It recognizes that people’s decisions don’t always follow simple logic. Instead, their choices are often influenced by emotions, uncertainty, and relationships with others.