Quenching Speculation in Quantum Markets via Entangled Neural Traders
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Quantum Physics arXiv:2602.06367 (quant-ph) [Submitted on 6 Feb 2026] Title:Quenching Speculation in Quantum Markets via Entangled Neural Traders Authors:Kieran Hymas, Hiu Ming Lau, Kareem Raslan, Qiang Sun, Azhar Iqbal, Derek Abbott, Andrew D. Greentree, James Q. Quach View a PDF of the paper titled Quenching Speculation in Quantum Markets via Entangled Neural Traders, by Kieran Hymas and 6 other authors View PDF HTML (experimental) 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. Comments: Subjects: Quantum Physics (quant-ph) Cite as: arXiv:2602.06367 [quant-ph] (or arXiv:2602.06367v1 [quant-ph] for this version) https://doi.org/10.48550/arXiv.2602.06367 Focus to learn more arXiv-issued DOI via DataCite (pending registration) Submission history From: Kieran Hymas [view email] [v1] Fri, 6 Feb 2026 03:51:40 UTC (3,765 KB) Full-text links: Access Paper: View a PDF of the paper titled Quenching Speculation in Quantum Markets via Entangled Neural Traders, by Kieran Hymas and 6 other authorsView PDFHTML (experimental)TeX Source view license Current browse context: quant-ph new | recent | 2026-02 References & Citations INSPIRE HEP NASA ADSGoogle Scholar Semantic Scholar export BibTeX citation Loading... BibTeX formatted citation × loading... Data provided by: Bookmark Bibliographic Tools Bibliographic and Citation Tools Bibliographic Explorer Toggle Bibliographic Explorer (What is the Explorer?) Connected Papers Toggle Connected Papers (What is Connected Papers?) Litmaps Toggle Litmaps (What is Litmaps?) scite.ai Toggle scite Smart Citations (What are Smart Citations?) Code, Data, Media Code, Data and Media Associated with this Article alphaXiv Toggle alphaXiv (What is alphaXiv?) Links to Code Toggle CatalyzeX Code Finder for Papers (What is CatalyzeX?) DagsHub Toggle DagsHub (What is DagsHub?) GotitPub Toggle Gotit.pub (What is GotitPub?) Huggingface Toggle Hugging Face (What is Huggingface?) Links to Code Toggle Papers with Code (What is Papers with Code?) ScienceCast Toggle ScienceCast (What is ScienceCast?) Demos Demos Replicate Toggle Replicate (What is Replicate?) Spaces Toggle Hugging Face Spaces (What is Spaces?) Spaces Toggle TXYZ.AI (What is TXYZ.AI?) Related Papers Recommenders and Search Tools Link to Influence Flower Influence Flower (What are Influence Flowers?) Core recommender toggle CORE Recommender (What is CORE?) Author Venue Institution Topic About arXivLabs arXivLabs: experimental projects with community collaborators arXivLabs is a framework that allows collaborators to develop and share new arXiv features directly on our website. Both individuals and organizations that work with arXivLabs have embraced and accepted our values of openness, community, excellence, and user data privacy. arXiv is committed to these values and only works with partners that adhere to them. Have an idea for a project that will add value for arXiv's community? Learn more about arXivLabs. Which authors of this paper are endorsers? | Disable MathJax (What is MathJax?)