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Why prices need algorithms (invited talk)

Published: 19 June 2017 Publication History

Abstract

Computational complexity has already had plenty to say about the computation of economic equilibria. However, understanding when equilibria are guaranteed to exist is a central theme in economic theory, seemingly unrelated to computation. In this talk we survey our main results presented at EC'15, which show that the existence of equilibria in markets is inextricably connected to the computational complexity of related optimization problems, such as revenue or welfare maximization. We demonstrate how this relationship implies, under suitable complexity assumptions, a host of impossibility results. We also suggest a complexity-theoretic explanation for the lack of useful extensions of the Walrasian equilibrium concept: such extensions seem to require the invention of novel polynomial-time algorithms for welfare maximization.

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MP4 File (d1_2a_1.mp4)

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cover image ACM Conferences
STOC 2017: Proceedings of the 49th Annual ACM SIGACT Symposium on Theory of Computing
June 2017
1268 pages
ISBN:9781450345286
DOI:10.1145/3055399
Permission to make digital or hard copies of part or all of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for third-party components of this work must be honored. For all other uses, contact the Owner/Author.

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 19 June 2017

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  1. Walrasian equilibrium existence
  2. welfare maximization

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  • Invited-talk

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STOC '17
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STOC '17: Symposium on Theory of Computing
June 19 - 23, 2017
Montreal, Canada

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Overall Acceptance Rate 1,469 of 4,586 submissions, 32%

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STOC '25
57th Annual ACM Symposium on Theory of Computing (STOC 2025)
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