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Quantum game approach for capacity allocation decisions under strategic reasoning

Author

Listed:
  • Masih Fadaki

    (RMIT University)

  • Babak Abbasi

    (RMIT University)

  • Prem Chhetri

    (RMIT University)

Abstract

From a common point of view, quantum mechanics, psychology, and decision science disciplines try to predict how unruly systems (atomic particles, human behaviors, and decision makers’ choices) might behave in the future. Effective predicting outcome of a capacity allocation game under various allocation policies requires a profound understanding as how strategic reasoning of decision makers contributes to the financial gain of players. A quantum game framework is employed in the current study to investigate how performance of allocation policies is affected when buyers strategize over order quantities. The results show that the degree of being manipulative for allocation mechanisms is not identical and adopting adaptive quantum method is the most effective approach to secure the highest fill rate and profit when it is practiced under a reasonable range of entanglement levels.

Suggested Citation

  • Masih Fadaki & Babak Abbasi & Prem Chhetri, 2022. "Quantum game approach for capacity allocation decisions under strategic reasoning," Computational Management Science, Springer, vol. 19(3), pages 491-512, July.
    • Handle: RePEc:spr:comgts:v:19:y:2022:i:3:d:10.1007_s10287-022-00424-0
    DOI: 10.1007/s10287-022-00424-0
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    References listed on IDEAS

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    1. Fadaki, Masih & Asadikia, Atie, 2024. "Augmenting Monte Carlo Tree Search for managing service level agreements," International Journal of Production Economics, Elsevier, vol. 271(C).

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