An exact algorithm for MAX-CUT in sparse graphs

We study exact algorithms for the MAX-CUT problem. Introducing a new technique, we present an algorithmic scheme that computes a maximum cut in graphs with bounded maximum degree. Our algorithm runs in time O^*(2^(1-(2/Δ))n). We also describe a MAX-CUT algorithm for general graphs. Its time complexity is O^*(2^mn/(m+n)). Both algorithms use polynomial space.