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Quantum-Inspired Cournot Model

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  • Amarendra Sharma

Abstract

This paper introduces economists to quantum-inspired approaches for modeling firm behavior in a Cournot Duopoly, designed for accessibility and pedagogical use. We present key quantum concepts -- superposition, entanglement, and quantum search algorithms (Grover's and D\"{u}rr-H\o{}yer's) -- in an intuitive manner, tailored for those without a quantum physics background. These concepts are applied to represent uncertainty, interdependence, and optimization in novel ways, offering fresh perspectives on firm decision-making. By incorporating numerical examples, we illustrate how quantum-inspired models differ from classical Cournot outcomes, highlighting potential advantages in capturing complex strategic interactions. The paper aims to bridge quantum computing and economic theory, providing a foundation for teaching and exploring advanced modeling techniques.

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  • Amarendra Sharma, 2025. "Quantum-Inspired Cournot Model," Papers 2504.19420, arXiv.org.
    • Handle: RePEc:arx:papers:2504.19420
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    References listed on IDEAS

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    3. David Orrell, 2016. "A Quantum Theory of Money and Value," Economic Thought, World Economics Association, vol. 5(2), pages 19-28, September.
    4. Sargent, Thomas J., 1993. "Bounded Rationality in Macroeconomics: The Arne Ryde Memorial Lectures," OUP Catalogue, Oxford University Press, number 9780198288695, Decembrie.
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