Complexity of markets

Computation in economic mechanisms



What is the computational power of a market? What is the computational complexity of the work that markets do? Socialist calculation debate. Computational complexity and command-and-control-economics.

Classic: Cosma Shalizi: In Soviet Union, Optimization Problem Solves You. See also his notebook on Planned Economies.

References

Arora, Sanjeev, Boaz Barak, Markus Brunnermeier, and Rong Ge. 2011. β€œComputational Complexity and Information Asymmetry in Financial Products.” Communications of the ACM 54 (5): 101–7.
Bossaerts, Peter, Elizabeth Bowman, Felix Fattinger, Harvey Huang, Carsten Murawski, Anirudh Suthakar, Shireen Tang, and Nitin Yadav. 2020. β€œComputational Complexity and Asset Pricing.” SSRN Scholarly Paper ID 3475433. Rochester, NY: Social Science Research Network.
Bowles, Samuel. 2004. Microeconomics: Behavior, Institutions, and Evolution. Princeton University Press.
Bowles, Samuel, Alan Kirman, and Rajiv Sethi. 2017. β€œRetrospectives: Friedrich Hayek and the Market Algorithm.” Journal of Economic Perspectives 31 (3): 215–30.
Daskalakis, C., P. Goldberg, and C. Papadimitriou. 2009. β€œThe Complexity of Computing a Nash Equilibrium.” SIAM Journal on Computing 39 (January): 195–259.
Eremeev, A. V. 2017. β€œOn Computational Complexity of the Electric Power Flow Optimization Problem in Market Environment.” Journal of Applied and Industrial Mathematics 11 (4): 500–505.
Feigenbaum, J., D. Koller, and P. Shor. 1995. β€œA Game-Theoretic Classification of Interactive Complexity Classes.” In Proceedings of Tenth Annual IEEE Structure in Complexity Theory Conference, 1995, 227–37.
Gao, Yuan, and Christian Kroer. 2020. β€œFirst-Order Methods for Large-Scale Market Equilibrium Computation.” arXiv:2006.06747 [Cs, Math], June.
Hayek, Friedrich A. 1945. β€œThe Use of Knowledge in Society.” The American Economic Review 35 (4): 519–30.
Levine, Matt. 2016. β€œAre Index Funds Communist?” Bloomberg.com, August 24, 2016.
Maymin, Philip Z. 2011. β€œMarkets Are Efficient If and Only If P = NP.” Algorithmic Finance 1 (1): 1–11.
McLennan, Andrew. n.d. β€œThe Computational Complexity of Games and Markets: An Introduction for Economists,” 86.
Mcleod, Doug, Garry Emmerson, Robert Kohn, and Geoff Kingston (universit. 2008. β€œFinding the Invisible Hand: An Objective Model of Financial Markets.”
Mises, Ludwig von. 2016. Economic Calculation In the Socialist Commonwealth. Lulu Press, Inc.
Nisan, Noam. 2007. Algorithmic Game Theory. Cambridge ; New York: Cambridge University Press.
β€”β€”β€”. n.d. β€œAlgorithmic Mechanism Design,” 44.
Shafer, Glenn, and Vladimir Vovk. 2001. β€œIntroduction: Probability and Finance as a Game.” In Probability and Finance: It’s Only a Game! Wiley-Interscience.
Spufford, Francis. 2012. Red Plenty.

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