In classical economic models of duopoly, where two businesses share a market with the same product, businesses compete by choosing either their prices or their production quantities. These models can suffer from well-known pathologies such as the Bertrand and Edgeworth paradoxes (Sekiguchi et al., 2010). Recent research has shown that letting companies use so-called “quantum entangled strategies” (Li et al., 2003) stabilizes the market. The current analysis of these quantum solution concepts often relies on the simple assumption of a straight-line demand curve (Shi et al. 2021). The aim of this project is to develop a contribution to this literature by exploring the effects of demand curves on quantum entangled strategies. The goal is to either chart exactly how quantum entanglement creates a new stable market equilibrium or find the precise mathematical roadblocks that prevent quantum mechanics from solving complex, non-linear economic problems.

Faculty Mentor: Dr. Christopher Trombley

Department of Mathematics and Physical Sciences