Quenching Speculation in Quantum Markets via Entangled Neural Traders

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Authors: Kieran Hymas, Hiu Ming Lau, Kareem Raslan, Qiang Sun, Azhar Iqbal, Derek Abbott, Andrew D. Greentree, James Q. Quach
Cited by: 0

Abstract

Speculative trading can drive pronounced market instabilities, yet existing regulatory and macroprudential tools intervene only after such dynamics emerge. Quantum technologies offer a fundamentally new means of shaping economic behavior by introducing non-classical correlations between decision-makers. Here we demonstrate a prototype quantum stock market in which entanglement between traders' valuations mitigates the runaway devaluation characteristic of speculative busts. Using reinforcement-learning agents trading a single commodity, we show that replacing classical valuations with quantum-correlated qubit-encoded valuations stabilizes prices and increases the AI traders' net worth relative to a classical market, where instead agents rapidly converge to liquidation strategies that collapse the asset value. To explain this behavior, we formulate and analyze a quantized version of the $p$-guessing game, a canonical model of speculative dynamics. Quantum entanglement and phase coherence reshape the strategic landscape, eliminating the pathological pure-strategy Nash equilibrium that drives market collapse in the classical game, while mixed-strategy equilibria remain non-degenerate and avoid bust-type outcomes. These results identify quantum correlations as a novel, endogenous mechanism for market stabilization and, more broadly, demonstrate the utility of multi-agent reinforcement learning algorithms for uncovering optimal strategies in complex decision-making frameworks with quantum degrees of freedom.

Fields of Study & Subjects

Quantum Mechanics and Applications Complex Systems and Time Series Analysis Quantum Computing Algorithms and Architecture

Publication details

Journal / source
arXiv (Cornell University)
Publication date
6 February 2026
Document type
Preprint