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Modeling Coopetition as a Quantum Game

Author

Listed:
  • Sujatha Babu

    (Department of Management Studies, Indian Institute of Technology Madras, Chennai, India)

  • Usha Mohan

    (Department of Management Studies, Indian Institute of Technology Madras, Chennai, India)

  • Tiru Arthanari

    (Faculty of Business and Economics, The University of Auckland, New Zealand)

Abstract

Coopetition is defined as the existence of simultaneous competition and cooperation between the same set of players, leading to entanglement of payoffs and actions of the players. This paper provides insights into the game theoretical application of quantum games to model simultaneity and entanglement that occur in coopetition. Modeling as a quantum game also allows for a larger action space and hence new equilibrium that may not have existed earlier. The impact of the level of entanglement on the equilibrium of the game can also be studied. We demonstrate the same through an example of two players who currently compete in the domestic market and are considering cooperating simultaneously in the international market. They need to determine the equilibrium strategy to adopt under coopetition that maximizes their payoffs. We also arrive at how to ensure that the quantum strategy is the equilibrium strategy for both players, namely, how to design the quantum strategy and how to define the unitary operator.

Suggested Citation

  • Sujatha Babu & Usha Mohan & Tiru Arthanari, 2020. "Modeling Coopetition as a Quantum Game," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 22(02), pages 1-13, June.
    • Handle: RePEc:wsi:igtrxx:v:22:y:2020:i:02:n:s0219198920400010
    DOI: 10.1142/S0219198920400010
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    Keywords

    Coopetition; quantum game;

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