Chinese Control Conference (CCC)

Quantization makes investors avoid the moral hazard

Lei Zhenzhou, Ming Zhang, Hong‐Yi Dai, Xi Chen, Liu Boyang

Published Jul 1, 2015• 1 citation

Abstract

Quantum “cash in a hat” game has been investigated in this paper. The new quantum game can cease the “moral hazard” and naturally leads both players to the Pareto optimal solution under the maximal entangled state. We also exploit the influence of the degree of the entanglement on the quantum game. It is revealed that there exist two threshold, a classical threshold γtucand a quantum threshold γthQfor γ ϵ [0, π/2]. The quantum game still behave “classically” if γ ≤ γtucand moral hazard can be overcome if γ > γthq. It should be underlined that there exists a Nash equilibrium between γthcand γthQ, which is unfortunately not Pareto optimal.

DOI: 10.1109/chicc.2015.7260959

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