Marginal Revolution
7/13/2026
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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