Quantum Financial Economics of Games of Strategy and Financial Decisions
AbstractA quantum financial approach to finite games of strategy is addressed, with an extension of Nash's theorem to the quantum financial setting, allowing for an entanglement of games of strategy with two-period financial allocation problems that are expressed in terms of: the consumption plans' optimization problem in pure exchange economies and the finite-state securities market optimization problem, thus addressing, within the financial setting, the interplay between companies' business games and financial agents' behavior. A complete set of quantum Arrow-Debreu prices, resulting from the game of strategy's quantum Nash equilibrium, is shown to hold, even in the absence of securities' market completeness, such that Pareto optimal results are obtained without having to assume the completeness condition that the rank of the securities' payoff matrix is equal to the number of alternative lottery states.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1202.2080.
Date of creation: Feb 2012
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Web page: http://arxiv.org/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-15 (All new papers)
- NEP-GTH-2012-02-15 (Game Theory)
- NEP-HPE-2012-02-15 (History & Philosophy of Economics)
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- Edward W. Piotrowski & Jan Sladkowski, . "An Invitation to Quantum Game Theory," Departmental Working Papers 15, University of Bialtystok, Department of Theoretical Physics.
- Harry Markowitz, 1952. "The Utility of Wealth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 60, pages 151.
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