Entanglement combing

We show that all multi-partite pure states can, under local operations, be transformed into bi-partite pairwise entangled states in a "lossless fashion": An arbitrary distinguished party will keep pairwise entanglement with all other parties after the asymptotic protocol - decorrelating all other parties from each other - in a way that the degree of entanglement of this party with respect to the rest will remain entirely unchanged. The set of possible entanglement distributions of bi-partite pairs is also classified. Finally, we point out several applications of this protocol as a useful primitive in quantum information theory.Comment: 5 pages, 1 figure, replaced with final versio

Quantum repeated games

In a two-stage repeated classical game of prisoners' dilemma the knowledge that both players will defect in the second stage makes the players to defect in the first stage as well. We find a quantum version of this repeated game where the players decide to cooperate in the first stage while knowing that both will defect in the second.Comment: Revised in the light of referee's comments. Latex, 10 pages, 1 eps figure, submitted to Physics Letters

Interbank network and bank bailouts: Insurance mechanism for non-insured creditors? : [Version 20 Februar 2013]

This paper presents a theory that explains why it is beneficial for banks to engage in circular lending activities on the interbank market. Using a simple network structure, it shows that if there is a non-zero bailout probability, banks can significantly increase the expected repayment of uninsured creditors by entering into cyclical liabilities on the interbank market before investing in loan portfolios. Therefore, banks are better able to attract funds from uninsured creditors. Our results show that implicit government guarantees incentivize banks to have large interbank exposures, to be highly interconnected, and to invest in highly correlated, risky portfolios. This can serve as an explanation for the observed high interconnectedness between banks and their investment behavior in the run-up to the subprime mortgage crisis

On the experimental feasibility of continuous-variable optical entanglement distillation

Entanglement distillation aims at preparing highly entangled states out of a supply of weakly entangled pairs, using local devices and classical communication only. In this note we discuss the experimentally feasible schemes for optical continuous-variable entanglement distillation that have been presented in [D.E. Browne, J. Eisert, S. Scheel, and M.B. Plenio, Phys. Rev. A 67, 062320 (2003)] and [J. Eisert, D.E. Browne, S. Scheel, and M.B. Plenio, Annals of Physics (NY) 311, 431 (2004)]. We emphasize their versatility in particular with regards to the detection process and discuss the merits of the two proposed detection schemes, namely photo-detection and homodyne detection, in the light of experimental realizations of this idea becoming more and more feasible.Comment: 5 pages, 5 figures, contribution to conference proceeding