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Quantum Auctions: Facts and Myths

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Author Info
Edward W. Piotrowski ()
Jan Sladkowski ()

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Abstract

Quantum game theory, whatever opinions may be held due to its abstract physical formalism, have already found various applications even outside the orthodox physics domain. In this paper we introduce the concept of a quantum auction, its advantages and drawbacks. Then we describe the models that have already been put forward. A general model involves Wigner formalism and infinite dimensional Hilbert spaces - we envisage that the implementation might not be an easy task. But a restricted model advocated by the Hewlett-Packard group (Hogg et al) seems to be much easier to implement. We focus on problems related to combinatorial auctions and technical assumptions that are made. Powerful quantum algorithms for finding solutions would extend the range of possible applications. Quantum strategies, being qubits, can be teleported but are immune from cloning - therefore extreme privacy of agent's activity could in principle be guaranteed. Then we point out some key problem that have to be solved before commercial use would be possible. With present technology, optical networks, single photon sources and detectors seems to be sufficient for experimental realization in the near future.

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Paper provided by University of Bialtystok, Department of Theoretical Physics in its series Departmental Working Papers with number 29.

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Handle: RePEc:sla:eakjkl:29

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  1. E. W. Piotrowski & J. Sladkowski, 2001. "Quantum Market Games," Game Theory and Information 0103003, EconWPA. [Downloadable!]
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  2. Edward W. Piotrowski & Jan Sladkowski, . "Quantum Bargaining Games," Departmental Working Papers 5, University of Bialtystok, Department of Theoretical Physics. [Downloadable!]
  3. Edward W. Piotrowski & Jan Sladkowski, . "Quantum Game Theory in Finance," Departmental Working Papers 19, University of Bialtystok, Department of Theoretical Physics. [Downloadable!]
  4. Edward W. Piotrowski & Jan Sladkowski, . "Quantum English Auctions," Departmental Working Papers 6, University of Bialtystok, Department of Theoretical Physics. [Downloadable!]
  5. Edward W. Piotrowski & Jan Sladkowski, . "An Invitation to Quantum Game Theory," Departmental Working Papers 15, University of Bialtystok, Department of Theoretical Physics. [Downloadable!]
  6. Edward W. Piotrowski & Jan Sladkowski, . "The Next Stage: Quantum Game Theory," Departmental Working Papers 18, University of Bialtystok, Department of Theoretical Physics. [Downloadable!]
  7. Edward W. Piotrowski & Jan Sladkowski, . "Quantum-Like Approach to Financial Risk: Quantum Anthropic Principle," Departmental Working Papers 8, University of Bialtystok, Department of Theoretical Physics. [Downloadable!]
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