This book presents a model of computing and a measure of
computational complexity which are intended to facilitate analysis
of computations performed by people, machines, or a mixed system of
people and machines. The model is designed to apply directly to
models of economic theory, which typically involve continuous
variables and smooth functions, without requiring analysis of
approximations. The model permits analysis of the feasibility and
complexity of the calculations required of economic agents in order
for them to arrive at their decisions. The treatment contains
applications of the model to game theory and economics, including
comparison of the complexities of different solution concepts in
certain bargaining games, and the trade-off between communication
and computation in an example of an Edgeworth Box economy.
General
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