Exploring quantum games: A new frontier in strategic decision-making
A recent collaboration between Democritus University of Thrace (DUTH), EY and BMO has pushed the boundaries of quantum game theory. The research introduced new entanglement operators for multi-player quantum games and examined how these operators influence player outcomes. The team tested them on IBM Quantum systems to evaluate hardware efficiency.
Game theory plays a critical role in economics, from helping develop pricing strategies and managing risk to scenario planning. It provides a framework for understanding complex behaviours and predicting outcomes based on the actions of other players. But what if we could take this a step further by integrating the principals of quantum mechanics?
Quantum games extend game theory by introducing quantum entanglement, creating correlations between player strategies that classical games cannot achieve. This can lead to more dynamic and complex outcomes beyond the reach of traditional models.
For BMO, the first Canadian bank to join the IBM Quantum Network, this research aligns with the bank’s Digital First strategy. By leveraging quantum technologies, BMO is exploring applications in portfolio optimization, risk management and climate prediction to push the boundaries of innovation in financial services.
As quantum computing advances, this research is a key step in applying the technology to real-world financial problems – and opening new possibilities for the industry.
