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Quantum Game Theory Based on the Schmidt Decomposition

We present a novel formulation of quantum game theory based on the Schmidt decomposition, which has the merit that the entanglement of quantum strategies is manifestly quantified. We apply this formulation to 2-player, 2-strategy symmetric games and obtain a complete set of quantum Nash equilibria. Apart from those available with the maximal entanglement, these quantum Nash equilibria are extensions of the Nash equilibria in classical game theory. The phase structure of the equilibria is determined for all values of entanglement, and thereby the possibility of resolving the dilemmas by entanglement in the game of Chicken, the Battle of the Sexes, the Prisoners' Dilemma, and the Stag Hunt, is examined. We find that entanglement transforms these dilemmas with each other but cannot resolve them, except in the Stag Hunt game where the dilemma can be alleviated to a certain degree.