This theoretical paper establishes a fundamental trade-off between market competitiveness and efficiency by linking them to the P vs NP problem. It argues that if P=NP, firms could efficiently detect collusion, making markets stable but non-competitive, whereas P!=NP prevents effective collusion detection, preserving competition at the cost of efficiency. The author suggests AI-driven computational advances may be pushing markets toward algorithmic collusion.
Background
The paper bridges theoretical computer science and economics, building on previous work by the same author regarding market efficiency. It addresses the ongoing concern about how advanced algorithms and AI might facilitate tacit collusion in modern digital markets.
- Source
- Lobsters
- Published
- Jul 3, 2026 at 11:42 PM
- Score
- 7.0 / 10