Phys. Rev. A 65, 052328 (2002) [8 pages]Backwards-induction outcome in a quantum gameReceived 20 November 2001; published 13 May 2002 In economics, duopoly is a market dominated by two firms large enough to influence the market price. Stackelberg presented a dynamic form of duopoly that is also called the “leader-follower” model. We give a quantum perspective on the Stackelberg duopoly that gives a backwards-induction outcome same as the Nash equilibrium in the static form of duopoly also known as the Cournot’s duopoly. We find the two-qubit quantum pure states required for this purpose. © 2002 The American Physical Society URL:
http://link.aps.org/doi/10.1103/PhysRevA.65.052328
DOI:
10.1103/PhysRevA.65.052328
PACS:
03.67.Lx, 02.50.Le, 87.23.Ge
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