Related papers: Kelly Betting with Quantum Payoff: a continuous va…
Quantum Decision Theory, advanced earlier by the authors, and illustrated for lotteries with gains, is generalized to the games containing lotteries with gains as well as losses. The mathematical structure of the approach is based on the…
In information theory, one area of interest is gambling, where mutual information characterizes the maximal gain in wealth growth rate due to knowledge of side information; the betting strategy that achieves this maximum is named the Kelly…
The properties of the Cournot model based on the most general entanglement operator containing quadratic expressions which is symmetric with respect to the exchange of players are considered. The degree of entanglement of games dependent on…
We investigate the most popular approaches to the problem of sports betting investment based on modern portfolio theory and the Kelly criterion. We define the problem setting, the formal investment strategies, and review their common…
Kelly criterion, that maximizes the expectation value of the logarithm of wealth for bookmaker bets, gives an advantage over different class of strategies. We use projective symmetries for a explanation of this fact. Kelly's approach allows…
A new representation of Game Theory is developed in this paper. State of players is represented by a density matrix, and payoff function is a set of hermitian operators, which when applied onto the density matrix give the payoff of players.…
We present a systematic investigation of the quantum games, constructed using a novel repeated game protocol, when played repeatedly ad infinitum. We focus on establishing that such repeated games -- by virtue of inherent quantum-mechanical…
We propose a simple yet rich model to extend the notions of Nash equilibria and correlated equilibria of strategic games to the quantum setting, in which we then study the relations between classical and quantum equilibria. Unlike the…
We analyze the Gambler's problem, a simple reinforcement learning problem where the gambler has the chance to double or lose the bets until the target is reached. This is an early example introduced in the reinforcement learning textbook by…
This paper characterizes the best possible rate of growth of wealth in a Kelly betting game when repeatedly betting against a general i.i.d. null hypothesis $\mathscr{P}$, but the data are drawn i.i.d from an arbitrary alternative $Q$. We…
Reinforcement learning studies how an agent should interact with an environment to maximize its cumulative reward. A standard way to study this question abstractly is to ask how many samples an agent needs from the environment to learn an…
While the Kelly portfolio has many desirable properties, including optimal long-term growth rate, the resulting investment strategy is rather aggressive. In this paper, we suggest a unified approach to the risk assessment of the Kelly…
In the standard approach to quantum games, players' moves are local unitary transformations on an entangled state that is subsequently measured. Players' payoffs are then obtained as expected values of the entries in the payoff matrix of…
We investigate coin-flipping protocols for multiple parties in a quantum broadcast setting: (1) We propose and motivate a definition for quantum broadcast. Our model of quantum broadcast channel is new. (2) We discovered that quantum…
We consider game theory from the perspective of quantum algorithms. Strategies in classical game theory are either pure (deterministic) or mixed (probabilistic). We introduce these basic ideas in the context of a simple example, closely…
Quantum state targeting is a quantum game which results from combining traditional quantum state estimation with additional classical information. We consider a particular version of the game and show how it can be played with maximally…
Quantum entanglement has been recently demonstrated as a useful resource in conflicting interest games of incomplete information between two players, Alice and Bob [Pappa et al., Phys. Rev. Lett. 114, 020401 (2015)]. General setting for…
The paper provides a mathematical model and a tool for the focused investing strategy as advocated by Buffett, Munger, and others from this investment community. The approach presented here assumes that the investor's role is to think about…
A local and distributive algorithm is proposed to find an optimal trial wave-function minimizing the Hamiltonian expectation in a quantum system. To this end, the quantum state of the system is connected to the Gibbs state of a classical…
In quantum game theory, one of the most intriguing and important questions is, "Is it possible to get quantum advantages without any modification of the classical game?" The answer to this question so far has largely been negative. So far,…