Ramij Rahaman, Priyadarshi Majumdar, B. Basu
This paper demonstrates the quantization of a spatial Cournot duopoly model
with product choice, a two stage game focusing on non-cooperation in locations
and quantities. With quantization, the players can access a continuous set of
strategies, using continuous variable quantum mechanical approach. The presence
of quantum entanglement in the initial state identifies a quantity equilibrium
for every location pair choice with any transport cost. Also higher profit is
obtained by the firms at Nash equilibrium. Adoption of quantum strategies
rewards us by the existence of a larger quantum strategic space at equilibrium.
View original:
http://arxiv.org/abs/1202.2283
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