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arXiv · 2504.19420

Quantum-Inspired Cournot Model

Amarendra Sharma
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Abstract

This paper introduces economists to quantum-inspired approaches for modeling firm behavior in a Cournot Duopoly, designed for accessibility and pedagogical use. We present key quantum concepts -- superposition, entanglement, and quantum search algorithms (Grover's and D\"{u}rr-H\o{}yer's) -- in an intuitive manner, tailored for those without a quantum physics background. These concepts are applied to represent uncertainty, interdependence, and optimization in novel ways, offering fresh perspectives on firm decision-making. By incorporating numerical examples, we illustrate how quantum-inspired models differ from classical Cournot outcomes, highlighting potential advantages in capturing complex strategic interactions. The paper aims to bridge quantum computing and economic theory, providing a foundation for teaching and exploring advanced modeling techniques.

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Amarendra Sharma. 2025-04-28. Quantum-Inspired Cournot Model. https://arxiv.org/abs/2504.19420

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