Counting sort is used when the range of input values (k) is not significantly larger than the number of elements (n) to be sorted. It is particularly effective for sorting integers or objects that can be mapped to integers, especially when the values are within a limited range. This algorithm operates in linear time, O(n + k), making it efficient for cases where the range of potential values is small compared to the number of elements being sorted. However, it is not suitable for sorting data with a large range of values or non-integer data types.
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