Quantization makes investors avoid the moral hazard

Quantum “cash in a hat” game has been investigated in this paper. The new quantum game can cease the “moral hazard” and naturally leads both players to the Pareto optimal solution under the maximal entangled state. We also exploit the influence of the degree of the entanglement on the quantum game. It is revealed that there exist two threshold, a classical threshold γ
_tuc
and a quantum threshold γ
_thQ
for γ ϵ [0, π/2]. The quantum game still behave “classically” if γ ≤ γ
_tuc
and moral hazard can be overcome if γ > γ
_thq
. It should be underlined that there exists a Nash equilibrium between γ
_thc
and γ
_thQ
, which is unfortunately not Pareto optimal.