Topological Quantum Nash Equilibria: Reconciling Pareto Optimality through Von Neumann Entropy Constraints
Yassin Tanan
Abstract
We formulate a rigorous mathematical proof demonstrating that the structural divergence between Nash equilibria and Pareto optimality in non-cooperative games can be strictly eliminated within a topologically protected quantum strategy space. Classical game theory frequently identifies equilibria, such as the Prisoner’s Dilemma, where individual rationality leads to systemic inefficiency. By mapping these strat- egy profiles into a composite finite-dimensional Hilbert space (H= NHi), we introduce a global entanglement operator that acts as a fundamental topological constraint on the action space. We prove that any unilateral local deviation representing opportunistic rent-seeking or information asymmetry acts as a non-unitary positive operator-valued measure (POVM). Invoking the No-Cloning theorem and the Araki-Lieb inequality, we formally demonstrate that such deviations unavoidably induce a partial trace over the global system, generating a strictly positive increase in local von Neumann entropy (S(ρi) > 0). This topological decoherence imposes a definitive thermodynamic penalty on the local utility observable, effectively internalizing the cost of friction. Consequently, we establish the existence and uniqueness of the Topological Quantum Nash Equilibrium (QNE), proving that under these specific geometric and quantum-mechanical constraints, the unique rational best response strictly converges to the global Pareto optimum. This framework provides a definitive information-theoretic resolution to systemic market inefficiencies.