A quantum algorithm succeeds not because the superposition principle allows ‘the computation of all values of a function at once’ via ‘quantum parallelism’, but rather because the structure of a quantum state space allows new sorts of correlations associated with entanglement, with new possibilities for information‐processing transformations between correlations, that are not possible in a classical state space. I illustrate this with an elementary example of a problem for which a quantum algorithm is more efficient than any classical algorithm. I (...) also introduce the notion of ‘pseudotelepathic’ games and show how the difference between classical and quantum correlations plays a similar role here for games that can be won by quantum players exploiting entanglement, but not by classical players whose only allowed common resource consists of shared strings of random numbers (common causes of the players’ correlated responses in a game). *Received October 2008. †To contact the author, please write to: Department of Philosophy, University of Maryland, College Park, MD 20742; e‐mail: [email protected]. (shrink)