Strategies and payoffs in quantum minority games

Game theory is the mathematical framework for analyzing strategic interactions in conflict and competition situations. In recent years quantum game theory has earned the attention of physicists, and has emerged as a branch of quantum information theory [1]. With the aid of entanglement and linear superposition of strategies, quantum games are shown to yield signifcant advantage over their classical counterparts. In this paper we explore optimal and equilibrium solutions to quantum minority games. Initial states with different level of entanglement are investigated. Focus will be on 4 and 6 player games with some N-player generalizations.Comment: 5 pages, 6 figures; Proceedings of the International Conference on Advances in Quantum Theory, Volume 1327, AIP,(2011

Doves and hawks in economics revisited [An evolutionary quantum game theory-based analysis of financial crises]

The last financial and economic crisis demonstrated the dysfunctional long-term effects of aggressive behaviour in financial markets. Yet, evolutionary game theory predicts that under the condition of strategic dependence a certain degree of aggressive behaviour remains within a given population of agents. However, as the consequences of the financial crisis exhibit, it would be desirable to change the 'rules of the game' in a way that prevents the occurrence of any aggressive behaviour and thereby also the danger of market crashes. The paper picks up this aspect. Through the extension of the in literature well-known Hawk-Dove game by a quantum approach, we can show that dependent on entanglement, also evolutionary stable strategies can emerge, which are not predicted by classical evolutionary game theory and where the total economic population uses a non aggressive quantum strategy.Evolutionary game theory; financial crisis; hawk-dove game; quantum game theory

Quantum voting and violation of Arrow's Impossibility Theorem

We propose a quantum voting system, in the spirit of quantum games such as the quantum Prisoner's Dilemma. Our scheme enables a constitution to violate a quantum analog of Arrow's Impossibility Theorem. Arrow's Theorem is a claim proved deductively in economics: Every (classical) constitution endowed with three innocuous-seeming properties is a dictatorship. We construct quantum analogs of constitutions, of the properties, and of Arrow's Theorem. A quantum version of majority rule, we show, violates this Quantum Arrow Conjecture. Our voting system allows for tactical-voting strategies reliant on entanglement, interference, and superpositions. This contribution to quantum game theory helps elucidate how quantum phenomena can be harnessed for strategic advantage.Comment: Version accepted by Phys. Rev. A. Added background and references about game theory and about Arrow's Theorem. Added an opportunity for further research. For citation purposes: The second author's family name is "Yunger Halpern" (not "Halpern"

Doves and hawks in economics revisited. An evolutionary quantum game theory-based analysis of financial crises

The last financial and economic crisis demonstrated the dysfunctional long-term effects of aggressive behaviour in financial markets. Yet, evolutionary game theory predicts that under the condition of strategic dependence a certain degree of aggressive behaviour remains within a given population of agents. However, as the consequences of the financial crisis exhibit, it would be desirable to change the 'rules of the game' in a way that prevents the occurrence of any aggressive behaviour and thereby also the danger of market crashes. The paper picks up this aspect. Through the extension of the in literature well-known Hawk-Dove game by a quantum approach, we can show that dependent on entanglement, also evolutionary stable strategies can emerge, which are not predicted by classical evolutionary game theory and where the total economic population uses a non aggressive quantum strategy

Quantum Penny Flip game with unawareness

Games with unawareness model strategic situations in which players' perceptions about the game are limited. They take into account the fact that the players may be unaware of some of the strategies available to them or their opponents as well as the players may have a restricted view about the number of players participating in the game. The aim of the research is to introduce this notion into theory of quantum games. We shall focus on PQ Penny Flip game introduced by D. Meyer. We shall formalize the previous results and consider other cases of unawareness in the game

Quantum Game Theory

Quantum game theory is the study of strategic behavior by agents with access to quantum technology. Broadly speaking, this technology can be employed in either of two ways: As part of a randomization device or as part of a communications protocol. We survey some of the main ideas from both branches of the subject