Experiments with probabilistic quantum auctions

We describe human-subject laboratory experiments on probabilistic auctions based on previously proposed auction protocols involving the simulated manipulation and communication of quantum states. These auctions are probabilistic in determining which bidder wins, or having no winner, rather than alwa...

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Bibliographic Details
Published inQuantum information processing Vol. 7; no. 4; pp. 139 - 152
Main Authors Chen, Kay-Yut, Hogg, Tad
Format Journal Article
LanguageEnglish
Published Boston Springer US 01.08.2008
Subjects
Data Structures and Information Theory
Mathematical Physics
Physics
Physics and Astronomy
Quantum Computing
Quantum Information Technology
Quantum Physics
Spintronics
Auctions
Experimental economics
Quantum economics
03.67.Ac
89.65.-s
Quantum games
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Summary:We describe human-subject laboratory experiments on probabilistic auctions based on previously proposed auction protocols involving the simulated manipulation and communication of quantum states. These auctions are probabilistic in determining which bidder wins, or having no winner, rather than always having the highest bidder win. Comparing two quantum protocols in the context of first-price sealed bid auctions, we find the one predicted to be superior by game theory also performs better experimentally. We also compare with a conventional first-price auction, which gives higher performance. Thus to provide benefits, the quantum protocol requires more complex economic scenarios such as maintaining privacy of bids over a series of related auctions or involving allocative externalities.
ISSN:1570-0755
1573-1332
DOI:10.1007/s11128-008-0079-4