Backwards-induction outcome in a quantum game
Quantum Physics
2009-11-07 v2
Abstract
In economics duopoly is a market dominated by two firms large enough to influence the market price. Stackelberg presented a dynamic form of duopoly that is also called `leader-follower' model. We give a quantum perspective on Stackelberg duopoly that gives a backwards-induction outcome same as the Nash equilibrium in static form of duopoly also known as Cournot's duopoly. We find two qubit quantum pure states required for this purpose.
Cite
@article{arxiv.quant-ph/0111090,
title = {Backwards-induction outcome in a quantum game},
author = {A. Iqbal and A. H. Toor},
journal= {arXiv preprint arXiv:quant-ph/0111090},
year = {2009}
}
Comments
Revised in the light of referee's comments. Latex, 16 pages, 2 figures, To appear in Phy. Rev. A