Quantum-like Representation of Extensive Form Games: Wine Testing Game

Abstract

We consider an application of the mathematical formalism of quantum mechanics (QM) outside physics, namely, to game theory. We present a simple game between macroscopic players, say Alice and Bob (or in a more complex form - Alice, Bob and Cecilia), which can be represented in the quantum-like (QL) way -- by using a complex probability amplitude (game's ``wave function'') and noncommutative operators. The crucial point is that games under consideration are so called extensive form games. Here the order of actions of players is important, such a game can be represented by the tree of actions. The QL probabilistic behavior of players is a consequence of incomplete information which is available to e.g. Bob about the previous action of Alice. In general one could not construct a classical probability space underlying a QL-game. This can happen even in a QL-game with two players. In a QL-game with three players Bell's inequality can be violated. The most natural probabilistic description is given by so called contextual probability theory completed by the frequency definition of probability.