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A random walk is a type of algorithmic process that involves taking random steps towards new points, with the probability of reaching a given point being dependent only on the previous point.

In a previous QETEL blog post we talked about the Braess Paradox and some related ideas such as Game Theory or Nash Equilibrium. However, we did not explain what Quantum Game Theory is and why it can achieve better results. To do so, we will fix ideas by reasoning with a concrete game and a particular quantization scheme.

We have all experienced the effect of traffic congestion on the road at one time or another. We have lost time, become angry and perhaps, in desperation, demanded that new roads be built. However, did you know that building new roads can lead to more congestion and increased travel time? This counter-intuitive fact is known as the Braess's paradox.

In this article, we introduce an application of the Quantum Amplitude Estimation (QAE) algorithm for the calculation of the expected value of the price of a zero-coupon bond using the binomial tree model.