Abstract: In this paper, we study the sparse linear complementarity problem, denoted by k-LCP: the coefficient matrix has at most k nonzero entries per row. It is known that 1-LCP is solvable in linear time, while 3-LCP is strongly NP-hard. We show that 2-LCP is strongly NP-hard, while it can be solved in O(n 3 logn) time if it is sign-balanced, i.e., each row has at most one positive and one negative entries, where n is the number of constraints. Our second result matches with the currently best known complexity bound for the corresponding sparse linear feasibility problem. In addition, we show that an integer variant of sign-balanced 2-LCP is weakly NP-hard and pseudo-polynomially solvable, and the generalized 1-LCP is strongly NP-hard.
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