Quantization of the Location Stage of Hotelling Model

TL;DR

This paper quantizes the Hotelling model's location stage, showing that quantum strategies can increase profits for both players, with benefits growing with entanglement, and these advantages persist in a generalized model.

Contribution

It introduces a quantum version of the Hotelling model and demonstrates increased profits and persistent quantum advantages over classical strategies.

Findings

Quantum game yields higher profits for both players.

Quantum advantage increases with entanglement.

Advantages remain in the generalized model.

Abstract

We present the classical Hotelling model we want to quantize, and investigate the quantum consequences of the game. Our results demonstrate that the quantum game give higher profit for both players, and that with the quantum entanglement parameter increasing, the quantum benefit over the classical increases too. Then we extend the model to a more general form, and quantum advantage keeps unchanged.