Letter graphs and geometric grid classes of permutations: characterization and recognition

In this paper, we reveal an intriguing relationship between two seemingly unrelated notions: letter graphs and geometric grid classes of permutations. An important property common for both of them is well-quasi-orderability, implying, in a non-constructive way, a polynomial-time recognition of geometric grid classes of permutations and $k$-letter graphs for a fixed $k$. However, constructive algorithms are available only for $k=2$. In this paper, we present the first constructive polynomial-time algorithm for the recognition of $3$-letter graphs. It is based on a structural characterization of graphs in this class.