Quantum Model of Bertrand Duopoly
AbstractWe present the quantum model of Bertrand duopoly and study the entanglement behavior on the profit functions of the firms. Using the concept of optimal response of each firm to the price of the opponent, we found only one Nash equilibirum point for maximally entangled initial state. The very presence of quantum entanglement in the initial state gives payoffs higher to the firms than the classical payoffs at the Nash equilibrium. As a result the dilemma like situation in the classical game is resolved.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1001.2831.
Date of creation: Jan 2010
Date of revision: Oct 2010
Publication status: Published in Chin. Phys. Lett. Vol. 27, No. 8 (2010) 080302
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-05 (All new papers)
- NEP-COM-2010-02-05 (Industrial Competition)
- NEP-IND-2010-02-05 (Industrial Organization)
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