Computational Complexity as Market Structure Determinant

Market competitiveness depends on whether firms can computationally detect deviations from price-fixing agreements. If P = NP (all computational problems have efficient algorithms), firms can easily identify defection, making cartel punishment credible and effective. If P ≠ NP, detection costs become computationally insurmountable, preventing firms from sustaining collusion and forcing markets toward competition. Market competitiveness is ultimately a function of computational difficulty rather than price mechanisms.

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