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Marginal Revolution
Marginal Revolution
7/13/2026
The original title is: "Markets are competitive if and only if P != NP"

The original title is: "Markets are competitive if and only if P != NP"

Original: “Markets are competitive if and only if P != NP”

Short summary

A theoretical proof arguing that competitive market outcomes require computational intractability. If P = NP, firms can efficiently detect deviations from collusion agreements in complex markets, making collusion sustainable as equilibrium. If P != NP, collusion detection becomes computationally infeasible under natural instance-hardness conditions, preserving market competition. The post is extremely brief — just an abstract with no full exposition.

  • If P = NP, firms can solve collusion detection efficiently, enabling sustainable collusion
  • If P != NP, collusion detection is infeasible, preserving competitive markets
  • Links computational complexity theory to market structure outcomes

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