Quantum Computing In Behavioural Economics

Imagine you are in a restaurant, and the waiter comes up with a menu. You are eyeing Mushroom Omelette, but a low voice in your head says that the mo:mo would be a better deal. In such a situation, your brain analyses your mood, bill, cravings, and other multiple factors. Similarly, we are faced with countless decision every day, whether it be elephantine financial investments or simpler customer choices. And billions of people worldwide make similar choices each second. What if there was a way to anticipate all such decisions, and also with the highest speed and accuracy? There meet the intricate waves of behavioural economics with quantum computing.

Quantum computing is an area of modern computer science that solves problems based on the principles of quantum theory. In a simple term, quantum computing solves problems that are extremely hard, and in some cases, impossible to solve for classical computing. The main difference between quantum computing and classical computing is that the classical computers use bits (0s and 1s) in order to process any information, but quantum computers use qubits, which can exist as both 0 and 1 at the same time, known as the superposition property, leading us to solve problems and make decisions much faster.

Behavioural economics is the interdisciplinary field of psychology and economics that explains how and why particular decision-making happen in the brain. It challenges classical economics, which had long predicted the human decision to be rational. Simply, it says that human choices are influenced by many factors like emotion, complexity of the situation, amount of information about that choice, and so on. 

From the general point of view, quantum computing and behavioural economics seem like two completely unrelated fields. The former focuses on modern and advanced computing technology, while the latter focuses on human behaviour and financial decisions. For all these fallacies among people, the intersection of quantum computing and behavioural economics holds strong promise for the future, especially in the developing country like Nepal, where financial literacy and decision making are supremely important of all.

The most important application of quantum computing in behavioural economics is that quantum computers can solve countless data with amazing speed and accuracy. As behavioural economics says that human choices aren't rational, their decisions are influenced by immensely large factors like emotions, traditions, societal circumstances, greediness and many more. So, with the help of quantum computing we can process all these factors at once. This can provide us an invaluable insight about how we behave or what happens in our brain when we make economic decisions in multiple different situations.

The second most important application of this field is quantum decision theory. According to traditional economics theory, probability is the foundation of decision-making. For example, we say that there's an 80 per cent chance that I'll buy new clothes in Dashain. But behavioural economics says that in the decision making process, multiple probability can co-exist at once. This type of complex coexisting probability can only be explained by quantum computing, as qubits exist in multiple states. This clearly shows that a more subtle understanding of decision-making probability in simple and complex economic situations can be analysed by using quantum computing.

Thirdly, the intersecting concepts of quantum computing and behavioural economics can be applied in predicting market patterns. In Nepal, the craze for financial markets, specifically stock market, is often observed among both younger and older generations. Because of financial illiteracy in the majority of Nepali people, the financial market is often driven by emotions, peer pressure, and irrational decisions. Through quantum computing, data can be analysed quickly and exhaustively, providing the most accurate predictions of market trends. This can help an investors to achieve a deeper understanding of human behaviour in multiple market circumstances at the same time.

As quantum computing in behavioural economics looks promising, it has been raising ethical questions as well. Since quantum computing has a power to process large datasets, it could also potentially be used to manipulate people's decisions by the exploitation of their physiological tendencies. This raises a serious concern about the privacy of our data. In the context of Nepal, where people are still unknown about data privacy and digital illiteracy, exacting data protection laws and ethical frameworks should be implemented to maximize its benefits and avoid the exploitation of this technology.

To sum up, acknowledging these advancements can provide us with tools to revamp decision-making in policy, business, budget analysis, governance, and daily life, tracing the path for a more economically literate, stable and prosperous society.